REPORT JANUARY – JUNE 2014

-- Net sales in the period amounted to MSEK 68 (78) and Net sales for the
quarter amounted to MSEK 31 (35).
-- The Gross margin for the period was 68% (68) and Gross margin for the
quarter was 63% (70). Gross profit for the period was MSEK 47 (53) and
Gross profit for the quarter amounted to MSEK 20 (25).
-- Earnings before depreciations and amortizations (EBITDA) for the period was
MSEK -25 (-43) and EBITDA for the quarter was MSEK -17 (-26).
-- The Result after tax for the period was MSEK -31 (-52)) and Result after
tax for the quarter was MSEK -18 (-31).
-- Earnings per share before and after dilution for the period was SEK -0.07
(-0.34) and for the quarter SEK -0.04 (-0,19).
-- Cash flow during the period was MSEK 6 (-3) and Cash flow for the quarter
was MSEK 6 (-11). Cash flow from operating activities before changes in
working capital in the period was MSEK -27 (-44) and for the quarter MSEK
-18 (-27). Cash flow from financing activities during the period was MSEK
39 (43) and for the quarter MSEK 13 (11).


Comments from the CEO

Expanding the portfolio from paper to screens

Revenues in the second quarter was MSEK 31.3 compared to MSEK 37,1 for the
first quarter. Gross margin was 63% compared to 73% in the first quarter.
Operating expenses were MSEK 36,8 in the second quarter compared to MSEK 34,6
in the first quarter. EBITDA was MSEK –17,3 compared to MSEK -7,7 in the first
quarter. Cash flow for the quarter was MSEK 5.8, including MSEK 12 of net
proceeds from the private placement in June. Included in working capital at the
end of the quarter was an inventory of 17,800 DP 201 digital pens for business
solutions.

Sales within business solutions was MSEK 20 in Q2, including MSEK 11 in the UK.
The second quarter is normally a weaker quarter within the healthcare sector in
the UK and significant resources were used to roll out solutions on contracts
won in the first quarter. The Nursing Technology Fund second tranche is opening
up for submissions later this year and marketing and sales activities were
started to target customers for late Q4 or Q1 2015 awards.

Anoto announced on June 19th that the company was in negotiations to divest its
Business solutions business. The purpose of the proposed transaction is to
realize the full potential of this business segment with a strategic partner to
enable a stronger marketing and sales presence. The negotiations are ongoing.

In the second quarter Anoto acquired 25% of we-inspire GmbH, a company
specializing in software for digital collaboration environments and Anoto set
up a 100% owned subsidiary, We-inspire Inc., based in Los Angeles, California
to sell We-inspire solutions in the US market.


Sales to OEM customers Livescribe, Panasonic, TStudy, Steelcase and Dai Nippon
Printing were 8.0 MSEK in second quarter versus 6.8 MSEK in the first quarter.
It has taken longer than we anticipated for these customers to scale up their
business and we expect more business from these and new customers towards the
end of this year. Panasonic has escalated their sales and marketing efforts of
their 4K Toughpad and Anoto shipped the first 2000 Touch Pens in the second
quarter.

OUTLOOK

Anoto will continue to supply partners in the business solutions area with
digital pens, components and related services in the similar way as we do with
other OEM partners within the technology licensing area. By working closely
with a smaller number of larger partners Anoto takes less go to market
responsibility in return for a stronger commitment and better scalability with
dedicated partners that have more sales and marketing resources.

Anoto’s strategic direction will shift to capitalize on its unique position as
the leading provider of high precision digital writing solutions for small as
well as ultra-large screens. Through we-inspire we want to capture a share of
the rapidly increasing market for collaboration solutions. We are one of few
companies that can offer real time interactivity between mobile and tablet
devices, digital paper, and digital writing for multiple users on ultra-large
screens. The increased awareness and proof of concept we get with our partner
Panasonic has led to interest from other companies to embed Anoto technology
into their products. In the second quarter we finalized the development of a
pen-prototype for a large global company who has the potential to become the
second large OEM customer in this market segment.

The divestment of Anoto’s Business solutions business will, if successful,
reduce OPEX and strengthen Anoto’s working capital.

For complete report, please see attached document.

A webcast of the Q2 report will be available from 09.00 on May 9 and a Q&A
session via audiocast will be held at 11.00 the same day.

For more information, see www.anoto.com/investors.

Anoto Group is required to disclose the information provided herein pursuant to
the Securities Markets Act. The information was submitted for publication at
08.30 on August 15, 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 Q2_14.pdf