-- Net sales in the period amounted to MSEK 111 (158) and Net sales for the
third quarter were MSEK 33 (47).
-- The Gross margin for the period was 70% (73) and Gross margin for the third
quarter was 73% (76). Gross profit for the period was MSEK 77 (115) and
Gross profit for the third quarter was MSEK 24 (36).
-- Earnings before depreciations and amortizations (EBITDA) for the period was
MSEK -63 (-7) and EBITDA for the third quarter was MSEK -20 (-6).
-- The Result after tax for the period was MSEK -75 (-21) and Result after tax
for the third quarter was MSEK -24 (-11).
-- Earnings per share before and after dilution for the period was SEK -0,44
(-0,16) and for the third quarter SEK -0,14 (-0,08).
-- Cash flow during the period was MSEK -2 (-13) and Cash flow for the third
quarter was MSEK 1 (-3). Cash flow from operating activities before
changes in working capital in the period was MSEK -52 (-12) and Cash
from operating activities before changes in working capital for the third
quarter was MSEK -11 (-2).


Comments from the CEO

CONNECTING THE DOTS
In Q3 we finalized the development of the Touchpen for Panasonic’s Toughpad 4K
20” tablet computer. This product is the first tablet with embedded Anoto
technology for digital writing. The high performance and accuracy is a proof
of what Anoto can offer to partners for freehand sketching, handwriting on
screens similar to writing on paper. Panasonic exhibited the product at the
large trade shows IFA in Berlin and CEATEC in Japan in September, and since
then there has been extensive coverage and good reviews.

Revenues in Q3 were MSEK 33 compared to MSEK 35 in Q2. Gross margin was 73%
compared to 70% in Q2. Operating costs were MSEK 47 in Q3 compared to MSEK 56
in Q2. We completed the re-organization in Sweden with the reduction of 35
positions, including a reduction of 6 positions in the subsidiary
C-Technologies. The OPEX savings will be approximately MSEK 35 p.a. with full
effect from January 1st. Because of slow sales in Q2 and Q3 we secured a bridge
loan of MSEK 13 for the financing of working capital and pen inventory.

TStudy signed a large contract with China Publishing Group for 100,000 pens
over a 3 year period and entered into a two year exclusive distribution
agreement with Anoto subject to performance.

We signed a large contract for Anoto Live Forms with a leading provider of home
care services in the UK. The first order is for 500 users with the potential
for expansion in the coming 12 months.

In the US we signed a contract with a major airline for use of a digital pen
solution at their pilots and flights attendants training center. Inflight
trainers are required by the US Federal Aviation Administration to document the
performance of tasks by the staff members and certify that they are in
compliance to assure their continued employment.

Our strategy going forward for Business Solutions is to focus on healthcare in
the UK where we already have a strong presence and the business momentum is
increasing with the availability of funds from the NHS to finance investments
in technology. In other developed markets we focus on segments where digital
writing technology has a clear advantage due to mandatory requirements, for
example physical documents signatures in banking. The third target area is
emerging markets like Turkey, Africa and India where digital writing technology
offers ease of use in environments with less developed infrastructure. We will
continue to work closer with selected partners in each of these markets to
align interests and co-ordinate activities in marketing, sales and support.

OUTLOOK
After close of the third quarter we have secured an arrangement with an
underwriting consortium for a share rights issue of 65 MSEK. The funds will be
used for repayment of short term liabilities as well as to secure financial
stability going forward. OPEX will be reduced gradually during Q4. Our main
focus is to optimize resource allocation, realize synergies between operating
units and bring the company to profitability. Based upon our unique ability to
provide natural digital writing input and interactivity on analog as well as
digital surfaces, we see a large potential to expand business with existing
partners as well as the ability to attract new partners.

Stein Revelsby
CEO


Anoto Group AB may be required to disclose the information provided herein
pursuant to the Securities Markets Act. The information was submitted for
publication at 08.30 on November 5, 2013.

A webcast of the Q3 report will be available from 09.00 on November 5 and a Q&A
session via audiocast will be held at 11.00 the same day. For more information,
see www.anoto.com/investors.

For complete report, please see attached document.


Calendar 2013/2014


EGM 15 Nov, 2013

Q4 report 6 Feb, 2014


For more information

Please contact:

Stein Revelsby, CEO
Phone: +46 (0)733 45 12 05

or

Dan Wahrenberg, CFO
Phone: +46 (0)733 45 10 19

Anoto Group AB (publ.),
Corp. Id. No. 556532-3929
Box 4106,
SE-227 22 Lund, Sweden
Phone: +46 46 540 12 00
www.anoto.com

Anoto Quarterly Report EN Q3.pdf