TALKPOOL INTERIM REPORT JANUARY – JUNE 2016

APR 1st – JUNE 30th 2016

  · Net sales amounted to EUR 2 653 thousand (2 592), a 2.3 percent increase
  · EBITDA of EUR -9 thousand (105) and EBITDA margin of -0.3 percent (4.1)
  · EBITDA excluding IPO-related costs of EUR 135 thousand (105) and EBITDA
margin of 5.1 percent (4.1)
  · EBIT of EUR -34 thousand (86) and EBIT margin -1.3 percent (3.3)
  · Net profit of EUR -98 thousand (36)
  · Cash flow from operating activities amounted to EUR 51 thousand (47)

JAN 1st – JUNE 30th 2016

  · Net sales amounted to EUR 5 109 thousand (4 827), a 5.8 percent increase
  · EBITDA of EUR 75 thousand (141) and EBITDA margin of 1.5 percent (2.9)
  · EBITDA excluding IPO-related costs of EUR 219 thousand (141) and EBITDA
margin of 4.3 percent (2.9)
  · EBIT of EUR 27 thousand (103) and EBIT margin 0.5 percent (2.1)
  · Net profit of EUR -95 thousand (-59)
  · Cash flow from operating activities amounted to EUR 72 thousand (-141)

APRIL - JUNE HIGHLIGHTS

  · Successful listing on Nasdaq First North, Stockholm on May 24, 2016
  · Establishment of majority owned JV in Mauritius and start up of fiber
network deployment projects for Huawei
  · Signing of partner agreement between TalkPool AB and Tele2 AB in Sweden for
the deployment of an IoT network and provisioning of IoT services in greater
Gothenburg
  · Launching of the “IoT as a Service” concept based on the Ski School tracker
trial in Laax, Switzerland
  · Start up of the Telefonica 4G network roll out project activities with Nokia
in Germany

 CEO COMMENTS

The second quarter of 2016 has certainly been one of the most eventful and
exciting periods in TalkPool’s history with the listing on Nasdaq First North on
24 May as the major highlight. The IPO marked the start of a new growth phase
for TalkPool based on acquisitions and new business in the emerging IoT market
and we have already made good progress in both areas.

The Nasdaq First North listing has opened an array of long-term possibilities
for TalkPool, but short-term it has had a slightly dampening effect on growth
due to the vast amount of energy, time and management resources invested in the
preparation and completion of the IPO. Preparations also included accounting
standard and process development, rebranding and homepage development. We have
seen delays in some projects in Africa and Mexico in our Network Service
business, caused by external factors. As a result, and in combination with IPO
related costs, our earnings for the first half of the year were somewhat lower
than internal expectations. Although the nature of TalkPool’s business may cause
revenue generation that sometimes varies from quarter to quarter, our
expectations for the full year, as well as our five-year plan, remain solid.

The IoT business unit continued to develop positively during Q2. Our main IoT
activities now span enabling IoT for smart buildings and cities, harbors and
many verticals connecting machines that previously were considered economically
unfeasible. A new concept called IoT as a Service has been positively received
by the customer in our ski school tracker trial in Laax, Switzerland, and will
be commercially launched during the coming ski season. We see a big future
potential in this concept that will constitute one of the cornerstones in our
IoT strategy going forward.

In May, TalkPool AB and the European telecom operator Tele2 announced their
cooperation in enabling a dedicated LPWAN IoT network in greater Gothenburg. As
part of the cooperation TalkPool AB will be responsible for IoT network
deployment and design of M2M/IoT solutions, which will give customers in
Gothenburg a forefront cutting-edge position in the upcoming era of
digitization.

Other IoT projects in our order book are advancing according to plan. Some
scheduling adjustments are of course normal in a developing and fast-growing
industry such as IoT, but are well compensated by strong underlying market
demand. Furthermore TalkPool is preparing for rapid technology shifts that are
likely to transform the IoT market during coming years

The third quarter has started with several exciting discussions and contract
negotiations with existing and new customers. TalkPool has also successfully
initiated M&A cases in several markets to identify and evaluate potential
acquisition candidates, within both Network Services and IoT.

In summary, TalkPool continues on a growth path with Network Services as our
foundation and the emerging IoT business and JV partnering in strategic markets
and service areas as drivers of growth.

Erik Strömstedt, CEO


FOR FURTHER INFORMATION, PLEASE CONTACT:

Erik Strömstedt, CEO
Telephone: +41 79 790 60 40
erik.stromstedt@talkpool.com

Hanna Rubensson, CFO
Telephone: +46 73 140 48 40
hanna.rubensson@talkpool.com


This information is such information that TalkPool is required to disclose
pursuant to the EU Market Abuse Regulation and the Swedish Securities Market
Act. The information was submitted for publication by the abovementioned contact
person on 30 August 2016 at 17:00 a.m. CET.