bublar group annual report19 · shareholder information 70 key definitions 70 bublar group ab...

B U B L A R G R O U P A N N UA L R E P O R T

19

CO N T E N TS

THE YEAR IN BRIEF 4

COMMENT FROM THE CEO 6

BUBLAR GROUP – THE XR TECHNOLOGY COMPANY 8

THE XR MARKET 12

BUBLAR’S ACTIVITIES

BUSINESS AREAS WORK 14 SHOP 16 PLAY 18

CUSTOMER CASE STUDIES SJ 20 KALMAR (CARGOTEC SWEDEN) 22 VY 24 PIXELS 25 CRUA OUTDOOR 26 THE ROYAL SWEDISH OPERA 28 HELLO KITTY AR: KAWAII WORLD 30 OTHERWORLD HEROES 32

SUSTAINABILITY 34

OUR VALUES 35

EMPLOYEES 36

THE SHARE AND SHAREHOLDERS 40

CORPORATE GOVERNANCE REPORT 42

BOARD OF DIRECTOR’S REPORT 47

FINANCIAL STATEMENTS 51

AUDITOR’S REPORT 66

BOARD OF DIRECTORS AND SENIOR EXECUTIVES 68

SHAREHOLDER INFORMATION 70

KEY DEFINITIONS 70

Bublar Group AB (publ) is the Nordic region’s leading listed XR tech-nology company specialising in Augmented Reality (AR) and Virtual Reality (VR). The Company offers XR solutions in E-commerce, Enter-tainment, Training and Manufacturing. The Company includes the sub-sidiaries Vobling, Sayduck and Virtual Brains. Bublar has its headquar-ters in Stockholm and is listed on Nasdaq First North Growth Market.

In essence, Bublar Group will change the game. We change how we Work, Shop and Play.

B U B L A R G R O U P

2. BUBLAR GROUP. ANNUAL REPORT 2019 3

MarchBublar Group strengthens its position in Asia where subsidiary Vobling is granted permission to offer its services to companies in the Philippines by the Philippine Economic Zone Authority (PEZA).

One of the new customers is CIMB Bank Phil-ippines, and AR applications will be devel-oped to better visualise and explain the bank’s services. The parent company, CIMB Group, is the fifth largest bank in Southeast Asia.

April

Proprietary MMO game Otherworld He-roes is beta-tested by 6,000 players from 70 countries with positive feedback and good KPIs. Further development has been underway for the next beta test, which opened in mid-February 2020.

Maria A Grimaldi is appointed CEO. Maria has broad experience from leading positions and Board appointments in companies such as Esportal, MOBA Network, gaming studio Fall Damage and Ztorm. She was previously a Board member on Bublar Group’s Board.

July

Bublar Group acquires Finnish AR com-pany Sayduck Oy. Sayduck’s technical SaaS platform for 3D and Augmented Reality is geared towards the international e-com-merce market.

August

Bublar Group partners with Google Maps for the augmented reality game Hello Kitty AR: Kawaii World. The partnership with Goog-le Maps gives Bublar access to the world’s leading map service.

September

Licences for the mobile game Hello Kitty AR: Kawaii World are expanded to include another 46 countries, including Japan, South Korea, Hong Kong, Taiwan, Southeast Asia and South America. This means that Bublar now has the distribution rights for the Hello Kitty mobile game for a total of 160 countries and 5 billion inhabitants.

Bublar Group wins global framework agreement with Scania for services related to CGI (Computer Generated Imagery), AR (Augmented Reality) and VR (Virtual Reality). The Company also got an order from Nordic train operator Vy to develop VR applications for training and simulations.

Sayduck begins an extended partnership with American company Pixels.com, one of the world’s largest digital marketplace for art, to enable customers to visualise their product catalogue in 3D and in real-time.

October

Bublar Group’s subsidiary Vobling re-ceives an order from SAAB to develop educational and training programmes based on Virtual Reality (VR), for a product within the airborne surveillance segment.

Bublar carries out a targeted new share issue of approximately SEK 40 million in order to broaden its shareholder base and increase investment in the Company’s B2B solutions, as well as in development and marketing re-sources for game development.

NovemberBublar Group’s share is listed on the Nasdaq First North Growth Market on November 11 2019. It was previously listed on NGM Nordic MTF.

Bublar Group’s subsidiary, Vobling wins a four- year framework agreement to supply immer-sive media to the Royal Swedish Opera.

Bublar Group starts pre-registration for the mobile game Hello Kitty AR: Kawaii World and teams up with Amazon Game Tech.

T H E Y E A R I N B R I E F 2 0 1 9


Bublar Group has built a strong foundation in terms of com-petence, code and modules within XR technology, with over a hundred different XR projects developed and delivered by our companies.

–MARIA GRIMALDI, CEO, BUBLAR GROUP AB

It has been an exciting year of acquisitions, several major new customers and continued development of our own platforms. We are focusing the development within the areas Work, Shop & Play, three segments where we see XR technology first having a significant early impact. There are also opportunities to take advantage of our established position to continue developing scalable products and solutions

In the area Work, we work with several large companies implementing XR technol-ogy in their operations. The focus so far has been mainly on creating digital virtual real-ity worlds where employees can simulate and practice work in digital environments using VR headsets and controllers. It’s fan-tastic to see our teams building and creat-ing simulated environments that are largely similar to reality.

Our Virtual Training platform is the founda-tion of the applications. During the year, we won a number of procurements from SJ, Norway’s Vy, Electrolux, SAAB, Kalmar/Car-gotec and a global framework agreement with Scania.

In order to strengthen our presence in the second growth area, Shop, we acquired the Finnish company Sayduck last summer. We believe Sayduck has a chance to revolutionise e-commerce by product visualising in 3D and AR with its SaaS software. The service allows end customers to see, test and place products digitally in their home environment.

For e-retailers, the benefits are obvious as consumers get a significantly better product visualisation, reducing the risk of mis-pur-chases and costly returns. Licence revenue has increased in the second half of the year compared to the first, which shows that we have left the start-up phase and can grow rap-idly as demand and market growth take off.

Our goals are high for 2020. The two mobile games Otherworld Heroes and Hello Kitty AR: Kawaii World are now being developed for launch. Both games utilise our proprietary technology for location-based mobile games, so-called real-world games, which is being developed in the Play segment.

Two major game productions are ongoing in parallel where we have chosen to account for the costs immediately. We have initiated close

partnerships with both Google Maps and Amazon Game Tech in the development and infrastructure of Hello Kitty AR: Kawaii World, which we believe significantly increases the chance of success. In addition to potential revenue from the games, the launches also give us a fantastic chance to showcase our platform, technology and know-how within this new and growing game genre, provid-ing opportunities for more interesting agree-ments with other game producers and brand owners.

Bublar Group has built a strong foundation in terms of competence, code and modules with-in XR technology, with over a hundred different XR projects developed and delivered by our companies. The consulting business is valuable because it ensures that product development takes place close to customers.

The focus for 2020 will be to gradually develop the business towards products and offerings that enable us to grow faster with licensing rev-enue, partner sales and scalability in focus.

Bublar Group is expanding. Net sales in the Group increased from approximately SEK 3.5

million in 2018 to SEK 17 million in 2019. A list-ed share on Nasdaq First North Growth Mar-ket also facilitates further interesting potential acquisitions.

There is currently high pressure and pace at our operations in Stockholm, Helsinki and Ma-nila. In early 2020, we are opening a sales of-fice in Singapore to grow and support the in-creasing demand in the Asian markets as well.

Our employees are key contributors to our po-sition today, and I want to highlight their efforts. We have the ambition to continue growing which means we have a need for more talented employees. One challenge is that we need to re-cruit more women. I believe in mixed teams with different backgrounds and competencies.

I look forward to an eventful and very excit-ing 2020 where Bublar Group together with XR technology changes how we work, learn, shop and play.

– Maria A Grimaldi, CEO Bublar Group AB

O U R G R OW T H J O U R N E Y I S J U ST B E G I N N I N G

W O R D F R O M T H E C E O


Bublar Group AB (publ) is the Nordic region’s leading listed XR technology company specialising in Augmented Reality (AR) and Virtual Reality (VR). The Company offers XR solutions in E-commerce, Entertainment, Training and Manufacturing.

B U B L A R G R O U P – T H E X R T E C H N O LO GY CO M PA N Y

We offer products and services for global com-panies and global consumer clusters. Bublar Group has a total of 60 employees, and com-prises Vobling, specialised in virtual training and industrial applications, Sayduck, specialised in e-commerce, and Virtual Brains, specialised in entertainment.

The Company was founded at the end of 2015 and since then has developed its business mod-el and organisation, partly organically through the recruitment of cutting-edge experts, and partly through acquisitions. The Company cur-rently has offices in three countries, and has its headquarters in Stockholm.

How we choose to experience things in a dig-ital world goes from 2D to 3D. It will become natural for us to consume visual information in 3D and to take an active part in a virtual world as we work, shop and experience. We call this Extended Reality or XR. Bublar Group provides XR solutions. For consumers, we improve their experience. For companies, we improve their business, making them faster, more efficient and closer to their customers.

Our highly qualified employees make us the leading listed XR company in the Nordic re-gion with bridgeheads in Manila and Singa-pore. The XR market has the potential to grow from 10 to 50 billion US dollars over the next

few years. We have the capacity to develop scalable products and services for global companies and global consumer clusters.

Strategy

Our strategy aims to build up cutting-edge ex-pertise and technology in the XR market, both organically and through acquisitions.

Products and offerings must be scalable and work in a global market. The Company focus-es on E-commerce, Entertainment, Training and Manufacturing.

Bublar Group will continue to create alliances with strategic partners around the world with the aim of providing fully-scalable services and products with great potential at a limited fixed cost.

Our ambition is to establish the Company as a strong global player, which will contribute to increased awareness and acceptance of the technology in order to create value for cus-tomers and shareholders. After intensive de-velopment work in recent years, on both the technical platform and the business models,

Bublar Group will capitalise on its work.

Business conceptOur business concept is to develop products and services based on XR technology aimed at improving the efficiency, productivity and experience of production, training and sales processes in the business areas Work, Shop and Play.

• Bublar group was established in late 2015. Magnus Granqvist, one of the founders, becomes the CEO.

• The Company quickly develops an algo-rithm that allows smartphone users to create visually animated AR content and publish it from locations all over the world.

• Focus on product development and the recruitment of talented people in gaming and software development as well as 3D visualisation and GIS (Geographic Informa-tion Systems).

• A first smaller issue with external risk capital.

• Launch of the first proprietary technology platform.

• The first mobile game focusing on social interaction and image sharing linked to geopositioning and physical places is released.

• Listing on NGM Nordic MTF in November

• Acquisition of Vobling and its subsidiary in the Philippines.

• A cooperation agreement is signed with Japanese company Sanrio.

• Conclusion of several strategic customer agreements.

• Maria Grimaldi appointed new CEO.

• Mobile game Otherworld Heroes is re-leased as a first Beta version

• Acquisition of Sayduck.

• Initiation of partnership with HTC and Tobii.

• Distribution licences for the mobile game Hello Kitty AR: Kawaii World extended to 160 countries.

• Listing on Nasdaq First North Growth Market.

2016 2017 2018 20192015

Our history

V I R T U A L LY A N Y T H I N G IS POSSIBLE

We improve the way peopleWork, Shop and Play through XR-technology

T H E C O M P A N Y


B U S I N E SS M O D E L G R O U P ST R U C T U R E

The Company has three subsidiaries with different focus areas, end customers and revenue generation sources: Virtual Brains, Vobling and Sayduck. They all share the goal of making the development of the business scalable.

Bublar Group develops applications based on the latest hardware and software from leading technology companies such as Micro-soft, Apple, Google, HTC, Facebook/Oculus, Unity and Tobii within the ecosystem of XR technology.

The ecosystem consists of VR and AR head-sets, hand controls, eye-tracking controls and software for application development. Through our own development of hundreds of different XR projects for our customers, we have built a strong structural capital in the form of expertise, code and modules – a capital structure that is our "XR Super Power Platform".

The platform creates the foundation for our development in three distinct segments: Work, Shop & Play. Our Virtual Training Platform means that we can create VR-based simulators. Our Visualisation Platform rev-olutionises commerce by enabling users to visualise products in 3D and AR. Our Re-al-World Platform enables us to create GPS-based games and other apps.

Bublar Group is now building a product port-folio to enable scalable solutions and custom-ised applications for this early stage of the XR market.

The Group consists of the Parent Company Bublar Group AB (publ) and the wholly owned subsidiaries Vobling AB, Sayduck Oy and Vir-tual Brains AB. Vobling AB, in turn, has a wholly owned subsidiary in the Philippines, Vobling Asia. All subsidiaries are wholly owned either di-rectly or indirectly by the parent company Bublar Group AB.

Vobling develops XR applica-tions and simulators which com-panies use to strengthen educa-tion, sales and design processes through interactive 3D environ-ments. Vobling receives revenue based on each customer assign-ment with fixed and variable li-cence revenue based on its own platform.

Sayduck helps e-commerce companies strengthen their digi-tal business through an improved buying experience and reduced return rate. Sayduck has a tech-nical platform with a scalable business model and a Software-as-a-Service offering. Sayduck’s business model is largely based on licence and subscription rev-enues.

Virtual Brains is the Group’s gam-ing development studio in Stock-holm. The studio has developed a proprietary platform that focuses on mobile gaming within the AR niche with the support of GPS functionality and real-time simu-lation. The Company develops its own games where revenue is gen-erated through in-app purchases and ads. The business model also includes game development for other clients.

BUBLAR GROUP (publ)

T H E C O M P A N Y

BUSINESS AREA WORK SHOP PLAY

PLATFORM XR VIRTUAL TRAINING PLATFORM

3D/AR VISUALISATION PLATFORM

XR REAL-WORLD PLATFORM

REVENUE MODEL LICENCE REVENUE CONSULTANCY REVENUE

SAAS REVENUE CONSULTANCY REVENUE

LICENCE REVENUE IN-GAME PURCHASES

AND ADS

EXAMPLES OF OUR CUS-TOMERS

SJ VY

SAAB ELECTROLUX

PIXELS.COM (USA) VALILLA (FI) ALESSI (IT)

ARTEMIDE (IT)

OTHERWORLD HEROES

HELLO KITTY AR: KAWAII WORLD

VOBLING SAYDUCK VIRTUAL BRAINS

XR

Virtual Training Platform

3D/AR

Visualization Platform

XR Real-World Platform

Clients

Customization

XR ”SUPER POWER” PLATFORM

People and scalable technology

XR TECH ECOSYSTEM


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T H E X R M A R K E T

The value of the global XR market is SEK 98 billionAccording to ARtillery Intelligence, global market value for XR in 2019 is approximately SEK 98 billion. Of the underlying segment, VR and AR aimed at consumers, are the largest markets with a value of just over SEK 34 billion and SEK 33 bil-lion respectively. The value of the corporate market for VR and AR is estimated to be approximately SEK 26 billion, divided into SEK 8 bil-lion for the VR segment and SEK 18 billion for AR.

AR – CORPORATEIndustrial applications for AR technology can be found in several areas.

In industry, it is used to increase productivity in manufacturing steps, and save time and raw materials in the development of new products, while increasing safety in the vari-ous work steps.

The aim is to improve efficiency by challeng-ing classic structures, processes and value chains. Examples of application areas are:

• Design and manufacturing

• Product visualisation

• Checks and quality assurance

• Repair and maintenance

TRENDSVenture capital to the sector

One factor that is expected to drive the in-creased implementation of AR/VR for compa-nies and consumers in several industries is the large sum of venture capital invested in the sec-tor. A report released in the summer of 2019 by Digi-Capital estimated that over SEK 53 billion has been invested in AR/VR-related investments globally over the past twelve months.

Increased number of mobile users

The use of smartphones globally continues to increase significantly. The global market for smartphones is expected to grow by 6.1 per-cent annually until 2023.

Unknown global access to the internet

The global online penetration rate is estimated to be 57% of the world’s population in January 2019. With an estimated rate of one million people per day going online for the first time, it drives the number of connected devices as well as potential markets for products based on VR/AR.

CASE STUDIESUnilever has measured a 50% reduction in downtime using AR

Unilever, one of the world’s largest manufacturers of consumer goods, has reduced its downtime by as much as 50% with the help of AR. The manufactur-er feels that great expertise often disappears when employees retire. AR enables expert help remotely for technicians. This enables problems to be resolved more quickly and for downtime to be shorter. Unile-ver has measured over 1700% ROI on the Compa-ny’s investment in augmented reality.

Boeing increases quality by 90% and cuts production time by 30% with the help of AR

Boeing, the world’s largest aircraft manufacturer, reduces errors and saves time in the manufacturing process through AR. Historically, the engineers had blueprints that were seven metres long in front of them, containing complicated and detailed descrip-tions. By superimposing information with AR directly into their field of vision using Microsoft’s Hololens headsets, instructions can be followed more easily, which leads to both increased security through re-duced errors and saved time during manufacture.

Walmart introduces VR training for over a million employees

Walmart, the world’s largest chain of hypermar-kets, discount department stores, and grocery stores, has purchased 17,000 VR headsets to train over one million employees. The Compa-ny has rolled out VR in its 4,000 stores, with HR responsible for carrying out the training. The Company has seen great advantages in using VR training in connection with the introduction of new technology and new machines, and ex-perienced great time savings. VR is also used in other areas, such as to evaluate how employees react to different customer situations.

AR – CONSUMERThe B2C market for AR includes prod-uct exposure within e-commerce, entertainment products and games.

The most well-known AR game is Pokémon Go, a ‘buy-in-app’ game that involves digital objects being placed in physical locations. Pokémon Go highlights the potential of AR and motivated most other major tech companies to open their eyes to the technology. This has been followed by a number of acquisitions in the market, such as Snapchat acquiring the Ukrainian AR com-pany Looksery for a purchase price of approxi-mately SEK 1.5 billion.

The market share for mobile games has increased sharply

The gaming market, which consists of mobile, PC and console games totalled $148.8 billion in 2019 with an annual growth rate of 7.2%. 15 years ago, mobile gaming’s share of the total gaming market was virtually non-existent, but it has grown, mainly as a result of increased smartphone penetration, and reached around $68 billion in 2019.

Mobile games can be developed for different platforms. Today, the dominant platforms are Apple’s iOS and Google’s Android. Mobile games are the most popular category of apps, and approximately 82 percent of all revenue for various mobile applications comes from mobile games.

Bublar develops mobile games within location-based AR

Bublar develops mobile games specifical-ly within location-based AR, known as Re-al-World Games. In addition to Pokémon GO, this genre includes titles such as Jurassic World Alive, Harry Potter Wizards Unite and Walking Dead Our World, illustrated in the chart above.

VR – CORPORATEVR technology is considered to have the po-tential to create new markets/products as well as to replace and/or improve existing ones in several areas. Just like the AR market, the VR market can be segmented on the basis of hardware and software, where the software segment can be divided into consumer and business applications.

Examples of hardware manufacturing are VR glasses, while software is about devel-oping apps, platforms and content. Busi-ness applications are the various types of services that facilitate streamlining efforts for businesses.

0

10.000

2018 2019 2020 2021 2022 2023

20.000

30.000

40.000

50.000

Mobile gaming made up 45 per-cent of the global games market in 2019.

Source: ARtillery

Source: ARtillery

Source: ARtillery

TOTAL VR MARKETUSD M

GROSS REVENUE, REAL-WORLD GAMESUSD M

2019 2023

TOTAL XR MARKET

VR AR

GLOBAL GAMES MARKET

TORAL AR MARKET, SOFTWARE

Source: ARtillery

T H E M A R K E T

$148.8 bn

Of which mobile gaming:

$68 bn

0

2.000

4.000

6.000

8.000

10.000

2019

[MUSD]

390

8.895

2023

963

5,200

50,000

40,000

30,000

20,000

10,000

0

10,000

8,000

6,000

4,000

2,000

0

USD M

USD M

MONTHS

12.

WO R K

The rapid development of technology con-nects the virtual world to the real world

The technology that enables virtual training is in its infancy, which means we’re very op-timistic about the future. The technological advances on the hardware side are fast-paced and create entirely new conditions for design-ing user-friendly and realistic experiences. We are now seeing user-friendly wireless head-sets enter the market and break down the comfort, cost and quality barriers.

VR headsets with built-in support for control-ler-free hand tracking are available and already applicable, helping to lower the threshold that exists between the virtual and the physical world.

With this development, new VR simulators will also replace even more previous virtual train-ing environments. We see how screens in VR headsets have approached a visual resolution that’s good enough for the human eye to ex-perience something that is truly real, which is a naturally an important milestone to pass.

Eye tracking in VR

Eye tracking is becoming more common in VR and has the opportunity to enhance expe-riences purely visually with what’s known as ‘Foveated rendering’, where high-resolution material is rendered where the user is looking, providing a very powerful tool for analysis.

By providing software with access to the us-er’s focus, training applications can be more intelligent and both guide and analyse a user through an experience.

Developments in 2019The Work business area won several new large enterprise customers during the year as well as increased sales to several existing customers.

Strategic focus on large customers

The work has purposefully followed the strategic direction laid down in early 2019 where assignments for large global com-panies have been prioritised. The strategy has payed-off during the year as several new large companies became customers.

Sales support, visualisation and instructional support

Several projects have been implemented for larger customers during 2019. One is Kal-mar (Cargotec Sweden AB), where product visualisation with the help of AR has been developed for the global truck manufacturer. Further assignments have been carried out for Electrolux, which are linked to product design and eye tracking in combination with VR, and sustainable design, where the solution is used for test groups evaluating consumer prod-ucts. A project is ongoing for the Royal Swed-ish Opera in Stockholm to develop presenta-tions of the Opera’s programme with the help of XR technology. The agreement signed with the Royal Swedish Opera is a four-year frame-work agreement. Finally, and agreement was also signed with SAAB for a training module in airborne surveillance over the year.

Product strategy and customer-adapted solutions

The strategy going forward is to develop the virtual training platform and run cus-tomer-specific training programmes and also our own finished products. The prod-ucts will now be packaged and made into a product for further sales, including through partners and retailers.

The XR consulting business is run in par-allel with the platform and product strat-egy. Here tailored solutions for virtual training and AR/3D/VR applications are developed for instructions, product vis-ualisation and sales support or work for hire projects. By working closely with cus-tomers, the business area can develop XR solutions that are at the forefront. Some solutions will be developed into products and packaged as a product offering to a larger customer group.

Increased expertise and a sales office in Singapore

Further strengthening of skills was made during the year. After the period an impor-tant next step was taken in expanding our Asian operations by deciding to open a new sales office in Singapore in February 2020. The purpose is to better serve existing cli-ents as well as broadening the customer base in Asia.

Bublar’s offering for companies and Virtual Training

Increased focus on Virtual Training

Considering the development, trends and maturity of customers, Virtual Training will continue to be one of the most prioritised ar-eas going forward. It is also in this area that a platform for Virtual Training was developed. The platform has an ambitious roadmap for 2020 and will form the hub of all forms of virtual training programmes that Vobling is developing.

Virtual Training Platform

Learning is an experience, everything else is just information. Virtual training has the op-portunity to be widely implemented in lots of industries in the near future. The training platform developed within the Work business area will be improved to meet each industry’s needs and follow progress made in the hard-ware ecosystem.

The platform operates customer-specific training programmes and also its own fin-ished products such as the "Fire Fighting Simulator", where VR headsets and propri-etary software enable users to practice in a simulated environment that replicates the real process of managing a fire. The first version of the product was adapted for fire in a train en-vironment and there are already orders from both SJ and Vy. The “Fire Fighting simulator” will now be packaged and made into a prod-uct for further sales.

The technological advances made in Virtual Reality mean that traditional learning and company training can be improved in several ways through a transition to virtual training. Increased educational quality, efficiency and security are some of the many benefits of virtual training.

XR useful within sustainability

Visualisation and simulation with digital twins gives companies a tool to achieve their sustain-ability goals, by reducing travel and product transportation, training and maintenance oper-ations, transferring skills, meeting virtually and using XR as a communication tool. In all of these areas, XR can be a way for companies to live up to their sustainability goals.

Augmented reality for instructions, maintenance and troubleshooting

Augmented reality seen through a phone camera or through glasses overlays informa-tion in real life with multiple application are-as. It can increase productivity, reduce errors, and be an invaluable communication tool for installers and service technicians, as well as serving as an inspection tool.

With the augmented reality experienced through AR glasses, the line of sight need not be broken to seek information. It is probably the improvement that is most important when looking at how AR can add value in the man-ufacturing industry. Because information such as instructions for assembly can be presented as a layer on top of reality, errors that occur due to misinterpreting instructions can be minimised. Getting a presentation shown di-rectly in the field of vision also means a more streamlined process. It can save valuable time as an installer or service technician no longer needs to look elsewhere to read the instruc-tion manual.

AR is also valuable as a communication and sales tool where digital twins can be visual-ised in a real environment, usually via a mobile phone or tablet.

B U S I N E S S A R E A

With VR, the customer can try out isolating a wall themself virtually, like in the example below. This is an application for Paroc’s isolation products.

14.

S H O P

Realistic visualisation is becoming a competitive advantage

The technology is maturing and use is largely made possible by Apple and Google’s soft-ware, as well as the cameras that are built into mobile phones that detect the location of the mobile phone and build a virtual model and understanding of the environment and light-ing conditions. Well-developed support for AR in mobile phones via the browser is also crucial for accelerated growth. This is now happening gradually, and consumers will in-creasingly expect that a realistic visualisation of products can be presented prior to pur-chase. Already today, users expect to be able to view images from multiple angles and con-figure products in terms of colour, form and options online before deciding to purchase.

AR facilitates sustainable e-commerce

One third of the products ordered online to-day are returned, often using the same unnec-essarily large package. A significantly more sustainable way of shopping would be if size, fit and appearance could be checked virtually

before placing an order. This is already possi-ble today, but e-commerce must invest in the support and the software needs to be made available to consumers. Mobile phones with multiple cameras, infrared vision and stronger computing capabilities will allow products to be tested virtually to a very high level of real-ism. This will result in fewer returns and more ‘real’ purchases as precision in product selec-tion becomes greater.

Other examples of products that we will see more of in AR include light fixtures, curtains, kitchen and bathroom fittings and appliances, tiles, floors and configurable furniture, as well as outdoor furniture and organic garden-re-lated products such as shrubs, flowers, and trees that can be visualised when designing a garden.

In the future, the consumer will also be able to feel the product

In the future, we will probably also be able to virtually feel products. Experiencing materials is especially important when we buy clothes or other textiles. Although this technology is not yet available today, the realistic visual rep-resentation achieved through AR, with lighting and scale in relation to the relevant environment and a reinforced product message can already help to achieve better choices.

AR provides more business opportunities

In addition to being able to evaluate a product from every conceivable angle inside and out, the interactive experience that follows from what AR visualisation adds also includes the configuration of the product as well as anima-tions and storytelling. For example, a home or

As more purchases are made digitally, higher demands are placed on visual product information. AR provides the opportunity for realism in product visualisation that can be crucial for creating trust and lead to digital purchases. The e-retailers that provide the technology create the opportunity for visitors to virtually see and try products in their natural environment and context.

office can be furnished virtually using AR, with materials on floors, ceilings, walls and lighting. AR can be used as a planning tool for interior decoration. Another possibility offered by AR is reinforcing the story of a product’s history and specifications, even with audio and video. Immersive storytelling can be used to reinforce a message concerning the product. Mobile AR with animations and storytelling will become more and more common.

Product development gets impetus from AR

The virtual testing of products also provides access to increased information for the anal-ysis of purchasing behaviour. In the future, the interactions with virtual products can provide crucial information about a product’s shortcomings and valuable feedback from consumers even before purchases are made. This also provides the possibility for product improvements. AR technology gives the cus-tomer the opportunity to look at details more closely, which can then reveal which parts of the product are the most interesting to look at for the supplier.

Big potential of Virtual Try-Ons

For products that relate to things we try on ourselves, we talk about Virtual Try-Ons. This can be items such as clothing, shoes, jew-ellery, make-up, glasses, hats, gloves and watches. This is a focus-area with huge poten-tial. Virtual changing rooms are moving into our mobile phones and homes, and the need to physically travel to a store to try products on is diminishing.

Bublar’s offering for e-commerce

Sayduck’s platform

Sayduck’s platform offers a service for com-panies that makes it possible to visualise their product catalogue in 3D and through AR. The platform is scalable, an SaaS solution, and de-velopment of the platform is ongoing. It will be a tool for customers to present their products in a realistic way, with real dimensions and in their real environment. Products with different configurations can also be configured and com-bined with endless colours and forms, making it possible for the end customer to visualise the al-ternative they wish. This provides the customer with a greater feeling of security as they can see the product virtually before purchasing.

A newly developed feature on Sayduck’s plat-form – photo-realistic rendering – gives cus-tomers the opportunity to get high-resolution, high-quality images of their products with real-istic lighting and shading. The photos are ren-dered on a server and the user receives an email within a minute with a link and access to the high-resolution image which can, for example, be turned online or in printed material. This is a good example of how a digital twin that’s been developed, that is, the 3D model of the product in this case, creates added value and can be used in a variety of ways to save both time and money.

Developments in 2019

The subsidiary Sayduck, which makes up the Shop business area, was acquired in July 2019. The number of 3D views on the platform increased in the fourth quarter compared with the fourth quarter of the previous year by approximately 55 per-cent and amounted to just over 1.6 million views.

Development of the product platform

Sayduck’s offering is based on a SaaS ser-vice platform. The platform is continuously evolving and improving, and several sig-nificant features were introduced over the last six months of 2019 – a new rendering feature, support for more 3D formats and better 3D compression technologies that streamline transmission in general.

New customers and the development of existing collaborations

Since the acquisition of the Company in July 2019, several new customer collab-orations were initiated. One of them is Pixels, headquartered in Santa Monica, California, which offers a digital market-place for print-on-demand art, design and photography.

A photo-realistic rendering function was launched with Vallila Interior, a leading Finnish textile company, as the first cus-tomer. Vallila uses the platform for better visualisation of its products.

Shopify has chosen the Sayduck Platform for 3D visualisation on its e-commerce plat-form used by over one million companies. Bublar contributes the visualisation platform and specialist expertise to the e-commerce platform’s customers and partners. The col-laboration with Shopify is very valuable and proves that 3D technology attracts e-com-merce and is an important factor in the buy-ing decision that is increasingly requested.

Building for the market’s best platform

Bublar is on the verge of achieving the goal of offering the best platform in the market to present products in 3D and AR. Now the focus is on growth and becoming an even more data-driven company, both in terms of customer benefit and market-ing of Sayduck’s platform. The business area has further strengthened its resourc-es within 3D to help customers make use of the opportunities of 3D and AR func-tionalities on the platform more quickly.


Bridge the gap between shopping online and in-store. Customers can try out and experience products virtually in their own home environment by using Sayduck’s 3D and AR Platform.


P L AY

We are confident that the Real-World Games genre will grow further and be enhanced by the maturity of technology in mobile-based AR with advances in Google ARCore, Apple ARKit and the upcoming wave of AR glasses connected to mobile devices that we will experience over the next few years. Our large investments in the platform for locatoin-basedmobile games as well as the two game productions Otherworld Heroes and Hello Kitty AR: Kawaii World will be met by a large tribe of players who are attracted to location-based playing.

Playing using physical movements

Physically active gaming, driven by game ap-plications that are enhanced by being able to explore in the real world, has proven to be a winning concept.

During this decade, AR glasses will be inte-grated into society, possibly reducing the use of mobile phones and tablets, and combined with 5G they will lead to heavier computations, simulations and 3D rendering taking place at a distance. Hardware such as AR glasses is be-coming easier and more comfortable to wear.

Manufacturers of AR glasses now also make lenses for different sight problems to order, which addresses one of the thresholds to the use of AR glasses accelerating and reaching the consumer market more broadly.

In a short-term perspective, the development of AR glasses we have seen in 2019 means we won’t see any major new revenue streams in 2020, but in a longer-term perspective, the progress is likely to affect strategies and de-velopment in the Real-World Games and mo-bile genres and apps in general.

The Real-World Games mobile game genre has been further established with more titles taking centre stage such as Minecraft Earth, Harry Potter, Wizards Unite, Walking Dead Our world, Jurassic World Alive and Ghost-busters World.

Bublar’s offering for games and gaming platformsBublar develops games that contribute to physical activity linked to gaming, in contrast to sedentary gaming on the sofa. Integrating physical movement as part of the experience is one of our guiding principles that is fol-lowed to create value in experiences for play-ers, and with an added benefit in society as we contribute to an active lifestyle.

Gaming platform

Bublar’s cloud-based software platform makes it possible to create games that need to process large volumes of data traffic in real time. The platform handles communication between users as well as with digital objects linked to physical locations in the real world. The platform saves time in developing own games and is a door opener for collaborations with major established rights owners around the world.

There are relatively few games in the market that have the functionality that our gaming platform enables. Bublar’s technical platform forms the basis for game productions in loca-tion-based AR, where many players share a virtual game plan that lies like a layer over the earth.

The technological development of smart-phones continues with new applications and features being added. From a game develop-ment perspective, this means new opportuni-ties for gaming experiences. But it also places demands on game developers to be able to technically incorporate new technologies for the meeting between the physical and the virtual world where mobile phones are gain-ing an ever-better understanding of the phys-ical environment. Bublar’s unique position is having both extensive technical skills and the creative ability needed to develop games that take advantage of these new opportunities.

The platform and advances within XR give us a unique opportunity. In a longer-term perspec-tive, opportunities for gaming experiences are also opened with AR glasses that are on the way but haven’t reached the consumer market yet.

The collaboration with Sanrio in Japan gives Bublar valuable experience in working with a rights owner in a strong position globally. The experience of working with reputable

companies that set high standards gives us credibility in future discussions with other rights owners for new projects.

Developments in 2019Efforts to advance the gaming studio and technical platform continue. The strategy is based on our four business opportu-nities: game development of own free-to-play titles (e.g. Otherworld Heroes); game development based on well-known brands/IP (e.g. Hello Kitty); game devel-opment on behalf of global publishers and game development in collaboration with other game studios.

During the year, we began collaborating with Google Maps for the Hello Kitty pro-duction, which means we create an even better technical height for the game and gain access to their experience from pre-vious locatoin-basedgames like Pokémon GO, Jurassic World: Alive and Walking Dead: Our World. Furthermore, coop-eration with the Unity game engine has deepened.

Otherworld Heroes

Otherworld Heroes is a proprietary lo-catoin-basedMMO (massively multiplay-er online) mobile game set in a parallel world of mysterious dimensions, and is the world’s first locatoin-basedgame with multiplayer functionality where players can see and collaborate with each other on the map.

In April, a milestone in development was passed with the launch of a closed beta version of the game. The technology was extensively tested to get concrete, valuable feedback and data from over 6,000 players in 70 countries with positive feedback and good KPIs.

In February, the second beta test was opened for the upcoming launch in 2020.

Hello Kitty AR: Kawaii World.

Production of the map-based game Hello Kitty AR: Kawaii World has taken place in various stages, and at full force from April 2019 when resources were redirected from other projects. The gaming studio delivered a first playable version of the game in June that was evaluated internally. Thereafter, the development continued based on the feed-back to improve the game experience and game play.

One of the latest launches of AR glasses aimed at the consumer market comes from Nreal.

UNIQUE REAL-WORLD PLATFORM FOR MOBILE MMO-GAMES

Mapping SystemGoogle Maps /Open Street Map

Social Interaction between players. A real-time engine for user-generated content linked to physical places around the world.

Large volumes of players united in one shared MMO-platform



C U S T O M E R C A S E S T U D Y

W O R K

Education and training for a safe and secure environment for employees and customers is what many companies see as one of their top priorities. Train-ing is often time consuming and costly. SJ was looking for a more efficient way of training its employees and decided to train its staff using the latest technology in Virtual Reality and Vobling’s expertise in Virtual Training.

Well-trained and confident employees are es-sential for ensuring smooth operation and for safety on board SJ’s trains. Traditional training is expensive and also requires trains to be tak-en out of operation and made available. It is also impossible to fully stage real-life scenari-os and prepare employees for them. In addi-tion, only a limited number of people can be trained at the same time.

“With the help of VR, virtual trains are now available for training, anytime, and more or less anywhere. Over time, this will radical-ly change how we train our staff,” says Aron Wahlberg, Business Development Manager

at SJ. “VR technology improves learning and will improve the efficiency of our training,” concludes Aron.

3,000 employees were trained using VR in 2019

SJ rolled the training modules out at 17 different hubs in Sweden, and in 2019 more than 3,000 train drivers and train crew members underwent the VR training. SJ will continue the training in 2020.

VR revolutionises staff training

Lots of situations that SJ’s employees may find themselves in require training; for example op-erating a complicated wheelchair lift, handling a door that’s stuck or connecting high voltage cables at the depot. Some scenarios, such as a fire, can be difficult to simulate using tradi-tional methods. This is where Vobling’s VR ex-pertise comes in. Vobling is working with SJ to design and develop VR training modules that make it possible to use virtual – but realistic – trains for various work tasks, incidents and even emergencies.

Headsets with ‘eye tracking’

Vobling collaborates on the training with HTC and VIVE Pro Eye hardware, a headset that allows the integration of eye tracking into the training modules. This combines the indus-try’s most advanced visual and audio func-tions into a single hardware solution that is well suited to training solutions.

VR saves time and money while raising the quality of training

By not having to take a train out of service and send employees off for training at another lo-cation, training becomes more time and cost effective. The quality of training will also be higher as all elements can be practised in a more realistic manner, and repeated until they are mastered. It also provides an opportunity to train more people faster.

New ways of training challenge existing habits – evidence of value and cultural change are important

With all new technology comes new ways of working and ingrained ways of working are turned upside down. SJ is no exception to

this rule. Some employees did not think they had the technical knowledge necessary, while others had preconceived ideas about VR in general.

This meant that it was important that Vobling was able to present the value and opportuni-ties to SJ in concrete terms. Vobling therefore developed a pilot that SJ could test to visualise the solution.

The pilot won the management team’s confi-dence in terms of quality and experience, and SJ then chose VR training for one of its train types.

To work on the cultural change necessary to get the employees on the new ‘train’, SJ worked on engaging an internal network of ambassadors who were already involved at the prototype stage. Investment in the ‘gamification’ of the training modules and a separate VR onboarding module has further contributed to a positive attitude change. Em-ployees now find the training modules both intuitive and easy to use. SJ’s employees now generally perceive VR training as being very positive, and they have come up with several new ideas to take VR training to the next level.

SJ

M O R E E F F I C I E N T SA F E T Y T R A I N I N G FO R S J T H R O U G H V R

About SJ SJ is a Swedish travel company, founded in 1856, offering sustainable train trav-el both independently and on behalf of national and regional public transport authorities. The Group has 4,600 em-ployees and sales of approximately SEK 8.6 billion in 2019. As the market-lead-ing train operating company, SJ connects Sweden and is the gateway to Scandina-via’s capitals of Stockholm, Copenhagen and Oslo.

“With the help of VR, virtual trains are now available for train-ing, anytime, and more or less anywhere.”

ARON WAHLBERG, BUSINESS DEVELOPMENT MANAGER AT SJ



W O R K

Forklift trucks aren’t very easy to move and the opportunities to show their potential to customers are limited. Through the visualisation technology in Augmented Reality, it is now possible to show the forklift truck’s functionality without being dependent on the physical product.

Kalmar offers solutions and services for cargo handling in ports, terminals, distribution centres and heavy industry. This involves complex and space-guzzling equipment.

“In a world of heavy machinery and complex solutions, the ability to visualise our solutions at a customer’s place of work is a huge advan-tage – for us in general, but especially for our customers. Serene decision making is crucial to our business,” says Rebecca Nielsen, Mar-keting Manager, Forklifts.

Using AR technology, forklift trucks can easily be taken to the customer for demos instead of the customer having to come to Kalmar. Digitisation and visualisation add value and simplify the information in customer meet-ings. Vobling works with this and other XR solutions for the corporate market.

“AR technology contributes to the customer gaining a greater understanding of the prod-uct and is an important part of the sales pro-cess,” says Alexander Engsund, Digital Busi-ness Developer at Kalmar.

In 2020, tests will be conducted with the new AR solution, which will form the basis for con-tinued cooperation in this and other areas. Kalmar conducts research and development itself with the help of VR and AR, in the field of simulators among other things. Alexander Engsund, who is responsible for this part of

innovation at Kalmar in Sweden, stresses the importance of long-term relationships in re-search and development.

“It’s valuable to have a long-term perspec-tive in collaborations when developing new technologies. This is something I appreciate about our collaboration,” continues Alexan-der Engsund.

Using mobile AR technology for visualisation and sales support is an interesting application of Bublar group’s offering which has great po-tential to be scaled up.

Kalmar

B R I N G I N G T H E FO R K L I F T T R U C K A LO N G W I T H T H E H E L P O F A R

About KalmarKalmar, part of Cargotec, provides solu-tions and services for cargo handling in ports, terminals, distribution centres and heavy industry. Kalmar is the industry forerunner in terminal automation and in energy efficient container handling, with one in four container movements around the globe being handled by a solution provided by Kalmar. At the end of 2019 Kalmar had over 5,700 employees in 30 countries. Cargotec is a listed company and sales in 2019 totalled approximately EUR 3.7 billion

“AR technology contributes to the customer gaining a greater understanding of the product and is an important part of the sales process”

– ALEXANDER ENGSUND,

DIGITAL BUSINESS DEVELOPER AT KALMAR.



S H O P

Through the latest AR technology, the customer can now visualise and try the designed product before purchase using their mobile devices in their own home. Pixels.com, which offers a digital marketplace for print-on-de-mand art, design and photography, has made its products available in 3D and AR formats using Sayduck’s XR platform.

AR in online retail has great potential and Pix-els.com is early to exploit the potential of the new technology.

“3D and AR revolutionise how products are displayed in online retail. The opportunity for the customer to experience our products in their own home, before purchase, increases the shopping experience and the likelihood of buying. We are very impressed with Say-duck’s technical capabilities – basically mak-

ing our entire catalogue available in 3D and AR overnight,” says Sean Broihier, CEO and co-founder of Pixels.com.

With Sayduck’s solution, Apple’s popular ‘AR Quick Look’ function takes a step for-ward by creating real-time 3D files instead of generating each product in advance as a single AR file.

“In consultation with Apple, we have devel-oped a solution to dynamically create millions of 3D objects in real-time. We look forward to implementing the new function together with Pixels.com, the leading print-on-demand company. With Sayduck’s solution, Pixels.com can present its extensive product range in 3D and augmented reality, AR”, says Niklas Slotte, Managing Director of Sayduck.

pixels.com

B R I N G T H E WO R L D ’ S L A R G E ST D I G I TA L A R T M A R K E T H O M E

About Pixels.comPixels is the world’s largest art market-place. Pixels has been helping artists sell wall art, home decor, clothes, and other products since 2006 and is home to hun-dreds of thousands of artists, photogra-phers, graphic designers, illustrators, and iconic brands.

More than 100,000 artists and photogra-phers currently offer ten million images for sale on Pixels.com.

Pixel’s platform also serves websites such as photos.com and Condé Nast Store, generating over 60 million website visits per day. Pixels.com has its headquarters in Santa Monica, California.

A new VR-based fire extinguishing simulator is being developed for Norwe-gian transport group Vy. The simulator eliminates unnecessary risks for both employees and instructors, while enabling scenarios that would otherwise be impossible to reproduce in real life.

In recent years, Vobling has developed sever-al VR applications in visual training and educa-tion. VR simulation is very useful for this type of training in several different ways. It pro-vides the opportunity to practise in a safe and secure environment as there are no real flames

or smoke that could harm the people who are being trained. It also provides the opportunity to train in a sim-ulation that is as close to reality as possible.

“With VR technology we can train our staff in a safe and scalable way. This VR application uses object recognition and by replicating fire and smoke spread, oxygen supply and tem-perature, we are able to practice in as realis-tic a training environment as possible. This is going to be a new and powerful tool for our comprehensive training programme at Vy,” says Ole Johnny Haugen, Head of Education at Vy Kompetansesenter.

VR technology also offers cost and environ-mental benefits. View only needs 6 x 6 metres of space for VR training, compared to a whole train carriage in traditional training, and there is no cost for waste management. No smoke or gases are released into the atmosphere and no powder or chemical waste need to be taken care of. This is a massive environmental advantage.

When virtual training is integrated into exist-ing training programmes, there is the oppor-tunity for companies to increase the quality of their training, become more sustainable, improve safety, save costs and strengthen the Company’s employer branding and retention.

VY

V I R T UA L R E A L I T Y B E CO M E S A R E A L I T Y FO R N O RWAY ’ S B I G G E ST T R A I N O P E R ATO R

About VyVy Group AS, formerly NSB, is a Norwe-gian transport group operating passen-ger rail and bus services in Norway and Sweden. The Group is owned by the Norwegian state through the Ministry of Transport. The Group also owns freight train operator Cargonet. Vy is Norway’s largest train company for domestic pas-senger transport services.

“This is going to be a new and powerful tool for our comprehensive training programme at Vy”

OLE JOHNNY HAUGEN,

HEAD OF EDUCATION AT VY KOMPETANSESENTER

“We are very impressed with Sayduck’s tech-nical capabilities – basically making our entire catalogue available in 3D and AR overnight”

SEAN BROIHIER, CEO AND CO-FOUNDER OF PIXELS.COM



W O R K


S H O P

Lots of companies work with 3D and AR, but there are several factors that need to be right when choosing a solution and supplier. Crua Outdoors, which develops technologically advanced, insulated tents for the open air market, had brainstormed ideas about how the customer relationship could be made more effective and how the company could positively surprise a customer before they came across Sayduck.

There were several reasons why Crua Out-doors went for Sayduck’s solutions. Most important was the quality of the models, but also the competitive price.

“We assessed a number of companies before deciding on Sayduck. We were aware that Sayduck’s platform encompasses AR, and af-ter contacting to them and a successful test during which we found Sayduck’s team to be very knowledgeable and detail-oriented, we decided to go with their solution,” says Hans Moolman, Software Developer at Crua Out-doors.

Crua Outdoors sees that they can use XR technology to help customers with their pur-chases. Like most other companies, Crua Out-doors has invested in high-quality photo and video content, but that still wasn’t enough to reach the users.

“We wanted the users to get a sense of the scale and quality of our products, even though they’re shopping online. With Say-duck’s 3D and AR solution, we can offer that,” continues Hans.

Customers actively participate in the experience

Sayduck created a “proof of concept app” for Crua Outdoors where the user can take part in the experience themself. The customer can walk around the tents, explore them in detail and even climb ‘inside’ the tents. ”WOW” was the word the users of the app used. When it comes to the timing of the implementation of the app, it couldn’t have been more perfect as Shopify launched its AR solution at a similar time.

From the first introduction, right through to production and delivery, Crua Outdoors felt that they were well cared for by the Sayduck team.

“We felt that Sayduck’s team was extremely responsive, knowledgeable, professional and accommodating. The quality of their products is second to none and their attention to detail surprises us every day,” says Hans.

3D and AR – business-critical for e-commerce companies

Crua Outdoors is convinced that 3D and AR solutions are a must for all e-commerce com-panies in the future. The ability to have a 3D model of a product, that you can rotate, zoom in on and see from every angle, adds a new and fun dimension to the user’s experience and increases the likelihood that your own product is chosen before your competitor’s. AR takes it to the next level. Customers can see and visualise the product in a physical space, and even crawl inside in cases like Crua Outdoors.

“To be able to increase sales, it is invaluable to be able to explore the products in an aug-mented reality because the size of our prod-

ucts makes it difficult for us to have them in a store or showroom. With AR, customers can set up the tent in their living room or garden and immediately get a feel for how it will look and work in reality. Who needs a physical store when you have AR?,” Hans concludes.

Positive for sales

Crua Outdoors launched the visualisation solution together with a renewed website in autumn 2019, which has resulted in a direct exchange on the product pages. Customers spend more time on the pages and the anal-yses show a peak in engagement with our 3D and AR experience.

Crua Outdoors

P I TC H A T E N T I N YO U R L I V I N G R O O M

“We felt that Sayduck’ s team was extremely responsive, knowl-edgeable, professional and accommodating. The quality of their products is second to none and their attention to detail surprises us every day.”

– HANS MOOLMAN, SOFTWARE DEVELOPER, CRUA OUTDOORS

About Crua OutdoorsCrua Outdoors develops technologically advanced, patent-pending insulated tents & hammocks for the outdoor market. The product is a very well-constructed and in-sulated environment that protects from sun, rain, wind and snow. The insulation also means that the tents can offer a darker and quieter inside environment when nec-essary. Crua Outdoors works with partners such as Yeti, Upscape, Oru Kayak and Klar-na.



W O R K

Opera is considered by many to be an art form that’s difficult to access. XR technology paves the way for new opportunities to experience opera performances, for existing and completely new audiences. The Royal Swedish Opera is an early adopter of the new technology.

Vobling has been trusted to develop XR solutions over the next four years in col-laboration with the Royal Swedish Opera – Kungliga Operan AB, one of Sweden’s most respected national stages. The Royal Swedish Opera places high demands on technical competence, creative breadth and the partner having a great understand-ing of what they do. These factors played a major role in the procurement according to the Royal Swedish Opera.

“We’re always looking for new ways to engage our audiences. Our performing arts are perfect for immersive media. We can use both images

and music to interact with new visitors,” says Catarina Falkenhav, Director of Communica-tions for the Royal Swedish Opera.

Through XR technology, the Opera opens up to a younger audience, but also increases ac-cessibility for those who would not normally choose to visit the opera.

AR boosts the 2020/2021 Season programme

The first task was to create content and produce the 2020/2021 Season programme.

Mentioned in Forbes magazine

Prestigious magazine Forbes highlighted The Royal Swedish Opera in an article mention-ing the opera houses around the world, such as the Royal Opera House in London, Opera Colorado, the Welsh National Opera and The Finnish National Opera and Ballet, which have also adopted the new technology.

The Royal Swedish Opera

X R PAV E S T H E WAY FO R M O R E P E O P L E TO E X P E -R I E N C E O P E R A

About The Royal Swedish OperaThe Royal Opera is Sweden’s nation-al stage for opera and ballet and was founded by Gustav III in 1773. Each year, the Royal Swedish Opera presents a large number of productions, from com-pletely newly written works to classical repertoire. The Royal Swedish Opera protects its cultural heritage while also pushing boundaries in three main areas; opera, ballet/dance, and activities for children and young people. Read more at www.operan.se

“We’re always looking for new ways to engage our audiences. Our performing arts are perfect for immersive media.”

– CATARINA FALKENHAV, DIRECTOR OF COMMUNICATIONS, THE ROYAL SWEDISH OPERA



P L A Y

There is lots of excitement and interest in forums and social media channels regarding the upcoming mobile game Hello Kitty AR: Kawaii World.

The trailer has seen a positive reception and reached 2.8 million views in various social media channels in February.

In November 2019, the opportunity to pre-reg-ister for the Hello Kitty game opened as the landing page and trailer were launched. At the same time, the collaboration with Amazon Game Tech began to expand marketing efforts.

Fans and players who have pre-registered will be pioneers. They will be the first to have the opportunity to play the mobile game with Hello Kitty and her friends by participating in upcoming soft-launches of the game. During the period leading up to launch, they will be able to find out about the latest news, compe-titions and other activities.

The game will be tested in strategically select-ed geographic markets during the first half of 2020 with the goal of launching this summer.

Distribution rights in 160 countries

Bublar, in partnership with the Japanese com-pany Sanrio, have secured rights to distrib-ute the game in more than 160 countries to approximately 5 billion people. The famous Hello Kitty character, founded by Sanrio, is one of the world’s largest media franchises. Licensing rights have been granted for Eu-rope, the Middle East, Africa (EMEA), India, Russia, New Zealand, Australia, Japan, South Korea, Hong Kong, Taiwan, Southeast Asia and South America.

“Since its debut in Japan in 1974, Hello Kitty has inspired generations around the world with its positive message of friendship and kindness. This game from Bublar means her dedicated fans can play with her and Sanrio’s other char-acters in a mixed reality on their mobile phones wherever they are in the world. We are excited to continue to share the joy of Hello Kitty and the Kawaii lifestyle,” says Jiro Kishimura, CEO, Sanrio Co Ltd.

Google and Amazon as partners

During the development of the game, Bub-lar has joined forces with various partners, including the Google Maps Platform, which provides access to the world’s leading map service. Buildings, roads and parks will be transformed in the game into a Kawaii world for Hello Kitty and her friends based on the Google Maps Platform integrated with Bub-lar’s own XR platform.

“Using the Google Maps Platform, we can op-timise the Hello Kitty game for visitor-friendly locations such as squares, parks and commer-cially important locations around the world,” explains Wictor Hattenbach, who heads Bub-lar’s game studio Virtual Brains.

Own gaming platform

The gaming industry is facing an exciting de-velopment. Smart mobile phones, big data and machine learning have taken maps from flat 2D images to imaginative and vibrant 3D models of the world. Hello Kitty AR: Kawaii World is based on the game engine Unity in combination with Bublar’s own gaming platform.

Another partner is Amazon Game Tech where we are able to reach out to their channels and share their cloud infrastructure.

Bublar’s technology platform is built to handle large user volumes where users create and in-teract in real time with data linked to physical real-life locations. By integrating Bublar’s gam-ing platform with the Google Maps Platform, even better gaming experiences are created where the real world is the playing field.

Hello Kitty AR: Kawaii World

5 B I L L I O N P E O P L E I N 1 6 0 CO U N T R I E S W I L L S O O N B E A B L E TO P L A Y H E L LO K I T T Y

About SanrioSanrio is the global lifestyle brand best known for the pop icon Hello Kitty. Home to many lovable characters including Gudetama, Chococat, My Melody, Bad Badtz-Maru and Kerokerokeroppi, Sanrio was founded on the philosophy of “Small Gift, Big Smile” – even a small gift can bring happiness and friendship to people of all ages. Since 1960, this philosophy has been an inspiration for the broad spec-trum of unique products and experiences offered by the Company. Today there are more than 50,000 Hello Kitty-branded products in 130 countries. Sanrio also has two theme parks in Japan; Sanrio Puroland and Harmonyland. They also licence San-rio characters for theme parks internation-ally, including in China.

“Since its debut in Japan in 1974, Hello Kitty has inspired generations around the world with its positive message of friendship and kindness. This game from Bublar means her dedicated fans can play with her and Sanrio’s other char-acters on their mobile phones wherever they are in the world.”

JIRO KISHIMURA, CEO, SANRIO CO LTD.



P L A Y

Otherworld Heroes is a proprietary location-based MMO (massively multi-player online) mobile game set in a parallel world of mysterious dimensions, and is one of the world’s first location-based games with multiplayer functionality where players can see and collaborate with each other on the map.

During the spring of 2019, the game was be-ta-tested by approximately 6,000 players in 70 countries with positive feedback and good KPIs. The trailer to Otherworld Heroes was also well-received in social media.

Further game development has been ongoing since then and in the fourth quarter of 2019 the last major building blocks were complet-ed for the functions that form the basis of the improvements that make up the game. These will now be tested further in Q1 2020 in a closed beta version before it’s time to launch the game according to plan during 2020.

The second beta test opened in mid-February.

“A very important part of the development of Otherworld Heroes has been to work on the feedback we received from the closed beta version that was evaluated during the second quarter of 2019. Thanks to this, we have fur-ther developed team game functionality and several worlds in the game,” says Wictor Hat-

tenbach, Game Studio Director.

The new beta version includes missions, ene-mies, resources to progress players in their ad-ventures through multiple worlds of the game (so-called Dimensions), compared to the first closed beta version where players only got to experience the first Dimension.

New features are added where players in teams can take on different challenges. The game also supports new social features such as Clans, often referred to as ‘guilds’ in oth-er games, where players can form common teams and where the entire clan must fight the enemy, gather resources and solve missions to unlock unique rewards.

Otherworld Heroes

T H E WO R L D ’ S F I R ST LO C AT I O N - B AS E D M M O R P G

“We started this journey with a dream to build a fantastic and innovative lo-cation-based game that would end up in the sweet spot between the best of worlds from World of Warcraft and Pokémon GO. Thanks to the team’s hard work and amazingly valuable feedback from our players from the first test peri-od, we have succeeded in creating the world’s first, and largest, location-based MMORPG where the entire planet is the playing field.”

WICTOR HATTENBACH, GAME STUDIO DIRECTOR, BUBLAR GROUP.

Location-Based MMORPG – Play with your friends in this magical location-based adven-ture! Explore the real world together with the gaming world.

Real-Time Multiplayer Combat – Become a hero by fighting evil monsters with your friends and team.

Explore Your Surroundings – Discover mys-terious places (POIs) like Mission Hubs and Portals that take you further and deeper into multiple worlds (Dimensions).

In mid-February 2020, the second beta test opened for the upcoming launch of Otherworld Heroes later in the year.


GOAL 3 – GOOD HEALTH AND WELL-BEING

Bublar is actively working to create well-being and promote the health of its employees. The games that are being developed also provide opportunities for mobility and social interaction.

GOAL 8 – DECENT WORK AND ECONOMIC GROWTH

Bublar complies with current legislation on their local markets and offers competitive conditions.

GOAL 9 – INDUSTRY, INNOVATION, AND INFRA-STRUCTURE

Through the product offerings and tai-lor-made solutions that Bublar offers to global industrial companies, there are great oppor-tunities to help customers achieve their sus-tainability goals through increased efficiency and cost savings.

GOAL 10 – REDUCED INEQUALITY

Bublar has an equality policy that states the equal value of all individuals. The Company is also actively working to attract more women to the business.

GOAL 12 – RESPONSIBLE CONSUMPTION AND PRODUCTION

The Sayduck Platform in the Shop business area is Bublar’s offering for the e-commerce market. Here’s where we can make a big contribution to reduced buy-backs, returns and transport by allowing the product to be visualised and tested or virtually placed in the consumer’s environment prior to purchase.

GOAL 13 – CLIMATE ACTION

The internal measures in the form of electrici-ty procurement, the use of smart solutions to reduce electricity consumption and the prin-ciple of preferring digital meetings together with Bublar’s various offerings positively con-tributes to reducing the climate footprint.

S U S T A I N A B I L I T Y E M P L O Y E E S

A N D V A L U E S SUSTAINABILITY OURVALUES

Society faces major challenges in adapting to become more sustainable. Different types of new technology, changed working methods and behaviours can contrib-ute to the transition to a more sustainable society. Bublar Group’s activities can contribute proactively and posi-tively to this journey.

Contributions in own operations

In its own operations, Bublar and its sub-sidiaries work with a number of activities to contribute to sustainability efforts. We have operations in several countries and priori-tise digital meetings via video or the phone, and travel only when there is a need to meet in person. We work using entirely electronic invoices and mainly with electronic docu-ments to avoid unnecessary printing. We have procured 100% hydropower for our electricity needs and have a function where electricity automatically switches off when the last employee leaves head office at the end of the day.

As developing games and business solu-tions requires a large amount of dedicated time at the computer for employees, sit-stand desks are standard for all employ-ees and work is interrupted for yoga and stretching together several times a day.

In the Group, training and movement are en-couraged and there are wellness grants or procured fitness agreements that give a dis-count on exercise facilities.

Bublar’s contribution through customer solutions

The businesses Bublar works with provide several conditions for contributing to sustain-ability through the development of products for the consumer and corporate markets. The proprietary gaming platform together with the upcoming mobile games provide oppor-tunities for movement and social interaction through their connection to the map and real life.

On the corporate side, VR and AR solutions for training, presentations, visualisation and instructions provide great opportunities for companies to reduce returns, transport and re-sources.

CURIOUSWe see opportunities and have a con-stant thirst for more knowledge. When we are curious we strive to grow. Curiosi-ty helps us constantly improve so that we lead the way together with our custom-ers. We are curious every day, to stay at the forefront of new technology and the development of platforms.

GUTSYWe say yes to new challenges. We dare to put forward new solutions and chal-lenge existing truths. We dare to believe in our own ability and take our own initi-atives to motivate and improve ourselves and the business.

RELEVANTWe are relevant to our customers through close collaboration and are quick to adapt to changes when needed. We listen to feedback from our custom-ers, consumers and other stakeholders and use it in our development. Staying relevant is important to being successful in business.

COLLABORATIONWe are Bublar Group. We value various skills and ways of approaching problem solving. We listen to each other’s opinions and are open to other perspectives. This creates faster progress and better solu-tions. When we cooperate well within the Group, we become unstoppable.

EMPOWERMENTWe empower each other. We trust each other and each person’s abilities. We give our colleagues and the team opportunities to learn, experiment, test, and take respon-sibility for the tasks. This provides growth opportunities and the courage to develop new skills and broaden our area of respon-sibility.

Sustainability includes an environmental, so-cial and economic perspective that Bublar keeps to. Bublar can contribute partly through their own operations and partly through the solutions and services that it delivers to cus-tomers and consumers. Bublar Group has a Sustainability Policy that guides its work.

Bublar’s contribution to the UN’s sustaina-ble development goals

Bublar follows the UN Global Compact 10 principles, Agenda 2030 and the UN’s sus-tainable development goals.

Our Corporate Responsibility is based on the UN’s guiding principles and goals and Agen-da 2030.

We work with responsible businesses and have selected 6 of the UN’s goals we can con-tribute to through our operations.

At Bublar, we follow our Code of Conduct and have recently developed new values to use as a foundation in our daily work. The values will be implemented in 2020. Further guidelines can be found in our policies that cover health and safety, gender equality and alcohol and drugs.

Today, we have a total of about 60 employees in the Group, of which 20% are women. Our goal is to recruit more women to the Company. We contin-uously work using feedback and performance appraisals.


WORKING AT BUBLAR.SOME PERSPECTIVES FROM OUR EMPLOYEES

Linda Andersson, 3D Artist, acting Lead Artist at Hello Kitty

What’s the best thing about your job?

I have always liked graphic expression, creat-ing and being creative. I have the opportunity to express this when I create graphics in the games. Colleagues are also important – meet-ing and socialising with people who share the same passion. Bublar provides this. The games I’m working on now – Otherworld Heroes and Hello Kitty AR: Kawaii World – have completely different styles which is cool. It provides exciting challenges and I get the opportunity to evolve and take on greater responsibility.

Why were you attracted to game devel-opment?

It was basically for two reasons. I’ve always enjoyed drawing and gaming. When I was a teenager I developed an interest in creating games myself. For example I play Japanese role-plays that are story-driven. At the end of secondary school I came into contact with 3D visualisation and decided to go for a higher education course in graphic computer game development as well as other specialised courses in the area.

Can games contribute to the health and development of society?

Yes, of course! The knowledge from game development and design can be used for de-veloping solutions in, for example, training, education and healthcare. The knowledge can also be useful in various research are-as. Playing different location-based mobile games, such as the ones we develop here at Bublar, also provides an opportunity for daily exercise and perhaps walking that extra bit to find a certain trophy in the game. Gaming is also social! You make friends from all over the world, and another bonus is that you get good at speaking English.

Fredrik Frank, Senior Business Developer at Vobling

What’s the best thing about your job?

Basically, I’m passionate about creating new opportunities for us and our customers, and taking advantage of all that immersive tech-nology can offer.

It feels incredibly exciting to be part of a tech-nological development that’s pioneering in being able to influence and change a wide range of industries and that contributes to new opportunities for communication be-tween people and machines.

I’ve previously worked in industries where new technology has made inroads and fun-damentally influenced companies and entire industries’ business models and operations. The business development part of the job is one of the main reasons why I like working here so much. Other reasons are that there is room to be constantly curious and that we dare to try new things. Yes another reason is the variety of assignments. It can be about an-ything from pharmaceuticals and medicine to forklift trucks and trains, or from training and safety to marketing communication and sales.

What makes the Company unique?

It’s inspiring to work in a company group that is characterised by forward thinking and a pioneering spirit. We’re in the middle of a strong growth phase, and it’s inspiring. It means even more colleagues to be inspired by and even more exciting opportunities.

We have a history, expertise and a track record which means that we have established a very strong position in the XR technology market, even though we are a relatively small company.

Within the Company group, we continuous-ly exchange experiences and make sure that everyone contributes. Whether it’s working on the development of location-based mo-bile AR games like Virtual Brains, or visualis-ation support in e-commerce, which is Say-duck’s primary area, or if it’s about immersive training, production or sales solutions for companies that we at Vobling are providing, we all help to find cutting-edge XR technolo-gy applications.

What can XR technology contribute to society?

I see XR as a new media. We’ve gone from storytelling to reading, to listening and to watching through various types of media development. XR is the latest part of that de-velopment. Now we’re adding interaction and proximity in an unprecedented way. This means that we can all participate in an event rather than just being a viewer.

XR also brings completely new opportunities for us humans to interact with technology. The way we educate ourselves will change. The way we use machines will change. This will bring benefits to the whole society in terms of better efficiency and quality, but also to us as individuals. XR isn’t in an isolated technology development bubble, it operates in symbiosis with other rapidly growing technologies such as artificial intelligence (AI), 5G, autonomous systems, voice control, etc. It is our own abili-ty to adopt changes that controls how fast the development is.

E M P L O Y E E S


E M P L O Y E E S

What do you appreciate the most with your work?

As a CTO and personally a very tech-focused guy, this industry makes my world exciting. I believe it will be one of the most interesting and promising advances we make during this decade. It is also hard to comprehend and predict as the status quo is changing all the time. That is why I think it is so exciting. We at Bublar and Sayduck are part of the revolution and it is great to see this happen.

I like to learn and to be part of new things. I believe Augmented Reality (AR) and Virtual Reality (VR) together are the next big things and it is fun to introduce and support our customers to use them.

What is the most exciting thing that has happened during the year in your opinion?

The most interesting thing was to see the pro-gress of AR in the market.

One of the coolest things was when Google late last year announced their next-gen web AR. AR without a dedicated app is already av-ailable on many phones, but it is still heavily limited. This next generation will for example allow digital and reality to seamlessly interact together, bringing AR closer to its full vision for the mass market and its true potential. It is not available in the market yet, but this will soon change the game once again.

For Bublar, the announcement of Hello Kitty AR pre-registration at Slush, which is one of the biggest tech events in Europe, was exci-ting. I’m truly proud that our product was part of this. It was great to have the opportunity to be at this event.

At Sayduck, I definitely think the launch of the photorealistic rendering was a big step forward. The R&D project started as an idea a couple of years ago, but the technical progress was not there yet. But during 2019 the technology arri-ved allowing the functionality to develop, ma-king it user friendly and cost efficient.

How do you think AR and VR could support your daily life?

Today, I think that it already makes my shop-ping easier with the digital offerings and in-teractions being much more informative and relevant to my own taste. It saves me time and money and it is better for the environment.

In the future I see VR and AR merging in a sing-le device - probably a headset at first -with the potential to replace all our current devices. Today we spend a huge number of hours in front of different devices that are limited in size and power because of their constraints related to their physical appearance. I see VR and AR digitalizing hardware as the Internet digitalized services by revolutionizing print, post, fax etc.

As a more concrete example: grocery shop-ping – I care about the environment. If I do not want to buy meat or products containing palm oil, a AR headset or lenses could visually and seamlessly filter out the choices in front of me based on my preferences using the in-gredients information instead of me manually reading each and every label in the store.

Another example is the bus stop. If I want to know when the bus leaves, I receive the exact information I need in my headset. The actual screen at the bus stop with general informa-tion is digitalized and will not be needed.

Silvain Toromanoff, CTO at Sayduck

Bea Lopez, Digital Marketing Manager, Vobling Asia

What is the best thing about your job?

The best thing about it is that I can contribute to the company’s growth strategy and disco-ver something new everyday.

All of us are empowered to be visionaries! In my role as Digital Marketing Manager, I am able to propose fresh ideas and unconven-tional methods to accelerate our global reach and capture targeted audiences. With a cultu-re of innovation, each day is different.

We are also encouraged to continuously learn and develop our skills and broaden our indu-stry knowledge. It is both challenging and ex-citing for me to learn more about virtual and augmented reality.

What can the company’s offerings contri-bute to society?

Our products and services can have a trans-formative impact on companies by enhancing customer experience, improving safety and quality in training and driving innovation. We work with customers from a wide range of in-dustries to resolve pain points across business units, helping them train, sell and develop products more effectively.

How is it to work from Manila together with a team in Stockholm?

It’s actually fun working with the Stockholm team! Our company promotes an open and friendly culture across teams.

Instead of being stuck in emails and project management sheets, we are able to get to know each other better and collaborate effi-ciently through frequent exchanges of ideas, continuous project updates and sharing of professional and personal news. Despite geo-graphical barriers, we still get to help each other become more agile and effective in eve-rything that we do.


The share and share capital

Bublar Group AB (publ) is a CSD-registered company, and its shares are registered in electronic form with Euroclear Sweden AB, where its shareholders’ register is also kept as the central securities depository and clearing organisation.

There is only one series of shares. Share cap-ital in Bublar totalled SEK 1,568,666 divided into 54,913,141 shares as at December 31 2019. The shares have a quota value of SEK 0.0286. All shares are issued and fully paid. The conditions for Bublar’s share classes are in accordance with Swedish legislation.

Bublar has not adopted policy and dividend rights.

In considering future dividend proposals, the Board will consider several factors, in-cluding Bublar’s operations, operating prof-it/loss and financial position, current and expected liquidity needs, expansion plans, contractual restrictions and other significant factors. Bublar finds itself in a rapid develop-ment and expansion phase so no dividend has ever been paid out. At present, the Board intends to continue to allow Bublar to balance any profits to finance the growth and the operation of the business.

General

All shares give equal rights to a share in Bublar’s assets and profits. The right to div-idend accrues to the person who was regis-tered as a shareholder in the shareholders’ register kept by Euroclear on the record day set by the AGM. There are no restrictions or special procedures for dividends for share-holders residing outside of Sweden. Share-holders are entitled to a share of profit in the event of liquidation in relation to the num-ber of shares held by the shareholder.

Share trading

Bublar shares will be trading on Nasdaq First North GM from November 11 2019, with the trade designation BUBL MTF and the ISIN code SE0010270793. Bublar’s share was pre-viously listed on NGM Nordic MTF from the IPO on November 6 2017 until the list change on November 11 2019.

Shareholder list

At the end of 2019, Bublar had approximately 3,800 shareholders. The shareholder list detailing the largest shareholders in Bublar according to the shareholders’ register (as at December 31 2019) is shown in the table be-low. For information on Board members and senior executives’ holdings in Bublar, please refer to the “Board members, senior execu-tives and auditor” section on pages 68–69.

F I N A N C I A L I N F O R M A T I O N

T H E S H A R E , S H A R E C A P I TA L A N D OW N E R S H I P ST R U C T U R E

Convertible loans, share warrants and other financial instrumentsEmployee share-option plan

The Annual General Meeting on 11 April 2019 decided on the introduction of a directed incentive programme, including a directed issue of share warrants with deviation from the shareholders’ pre-emption rights, to em-ployees and senior executives. The Meeting resolved to issue a maximum of 4,000,000 warrants under the programme. The right to subscribe for the share warrants was added to Bublar’ newly formed wholly-owned sub-sidiary for this purpose, which subscribed for the options at no consideration and sub-sequently transferred them to employees on the instructions of Bublar’s Board of Directors. Each share warrant entitles you to subscribe for a share in Bublar. The warrants have a term of 3 years, after which the holder has the right to exercise the options for the subscription of shares in Bublar until May 31 2022. The offer to purchase warrants is made in lots of a max-imum of 30,000.

The offer was distributed among the employ-ees based on a decision by Bublar’s Board of Directors as follows:

• The CEO was offered a maximum of 15 lots.

• Managers were offered a maximum of 5 lots.

• Other employees in the Swedish opera-tions were offered a maximum of 1 lot.

• Employees in Manila were offered a share in the profits from a pool of 7–10 lots.

• The remaining options may be used for any new employees and are subscribed until August 31 2020.

2

3

4

5

6

7

8

JAN

SEK

FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Share price 2019

Distribution of ownership, 31 Dec 2019

Handelsbanken Fonder4,000,000 (7.28%)

Connecting Capital Ventures AB3,563,065 (6.49%)

Kenneth Häggmark via Kvantskum AB2,516,310 (4.58%)

Magnus Granqvist via MAGRAQ Invest AB 2,516,310 (4.58%)

Patrik Hansson via Varde Holding AB2,500,000 (4.55%)

Avanza Pension insurance company 2,384,169 (4.34%)

Åhlén-foundation 2,213,822 (4.03%)

Nordea Bank ABP1,691,748 (3.08%)

SE Banken S.A.1,000,000 (1.82%)

Alexander Hamilton via Hypotax Holding AB964,320 (1.76%)

Other, approximately 3,830 shareholders 31,563,397 (57.47%)


C O R P O R A T E G O V E R N A N C E

R E P O R T B U B L A R G R O U P A B

The nature and focus of the business

Bublar Group AB (publ) is a Swedish public limited company whose shares have been traded on Nasdaq First North Growth Market since November 11 2019. The Swedish Code of Corporate Governance (the Code) applies to all Swedish companies whose shares are listed on a regulated market in Sweden. Cur-rently the Code does not have to be applied by companies whose shares are listed on Nas-daq First North Growth Market. Bublar Group did not apply the Code in 2019 other than in areas where it was considered relevant to the Company. In addition, Bublar Group’s corpo-rate governance is based on Swedish legis-lation, the Company’s articles of association, internal rules and regulations and generally accepted stock exchange practice.

Bublar’s corporate governance is about en-suring that operations are managed sustaina-bly, responsibly and as efficiently as possible. This is done through having an effective or-ganisational structure, good internal control and risk management, as well as accurate and transparent internal and external reporting.

Corporate governance model

Important external legislation

• The Swedish Limited Companies Act

• Accounting legislation, The Swedish Accounting Act and The Swedish Annual Accounts Act

• Nasdaq First North Nordic – Rulebook

• The Swedish code of Corporate Governance code (The Code)

Important internal legislation

• Articles of association

• Formal work plan for the Board of Directors

• Communication and information policy

• Other policies, guidelines and manuals

Shares and shareholders

The share capital of Bublar Group AB (publ) consists of only one class of sha-res. The total number of shares amounts to 54,913,141 shares, where one share cor-responds to one vote when voting at the Annual General Meeting. The number of shareholders amounted to approximately 3,800 as at December 31 2019. The largest shareholders at the end of 2019 were Han-delsbanken Micro Cap Fond with 7.28 per-cent of the share capital, Connecting Capital Venture AB with 6.49 percent, and Kvant-skum AB (Kenneth Häggmark) and MAGRAQ Invest AB (Magnus Granqvist) with 4.58 per-cent each. The Shareholders ultimately deci-de on the Company’s governance by adop-ting the Articles of Association at the Annual General Meeting, which specifies the direc-tion for the business, and appoints the Board and the Chairman of the Board, whose task is to manage Bublar’s affairs on behalf of the shareholders.

Annual General Meeting

The Annual General Meeting is the Compa-ny’s highest decision-making body, where the shareholders exercise their influence in the Company. The Annual General Meeting is held annually within six months of the end of the fi-nancial year. The time and place of the Annual General Meeting are published at the same time as the Q3 report at the latest. Every sharehold-er, irrespective of the size of their shareholding, also has the right to have a matter dealt with at the Annual General Meeting if a request for this is submitted to the Board in sufficient time so that the issue can be included in the notice to the Annual General Meeting.

Notice of the Annual General Meeting and notice of the Extraordinary General Meeting where the issue of amendments to the Articles of Association will be dealt with must take place no earlier than six and no later than four weeks before the Meeting. Notice of any other Extraor-dinary General Meeting shall be held no earlier than six and no later than two weeks before the meeting. Notice of the Annual General Meeting shall be made through advertising in Post- och Inrikes Tidningar and by making the notice avail-able on the Company’s website. At the same time, the fact that notice has been given is an-nounced in Dagens Industri.

Shareholders who wish to attend the Annual General Meeting must be registered in either the transcript or other presentation of the en-tire shareholders’ register five working days prior to the meeting, and notify the Company no later than the date specified in the notice of the AGM. The latter day must not be a Sunday, other public holiday, Saturday, Midsummer Eve, Christmas Eve or New Year’s Eve, and must not fall before the fifth working day before the An-nual General Meeting.

Shareholders or representatives may only bring a maximum of two assistants to the An-nual General Meeting if they report the num-ber of assistants to the Company in the man-ner specified in the previous paragraph.

Decisions at the AGM are made by a simple majority of the votes cast. Some decisions, such as amendment of the articles of associa-tion, require a qualified shareholder majority.

Present at the AGM

AGM 2019

The Annual General Meeting 2019 was held on April 11 at Konferens Spårvagnshallarna in Stockholm. At the AGM 44% of the votes and therefore the same proportion of the shares were present. The Board of Directors and management team were present at the meet-ing. The following main decisions were made:

Gustaf Cardelius was elected Chairman of the meeting. The Parent Company’s and the Group’s balance sheet and income statement were adopt-ed. The Board of Directors and CEO were dis-charged from liability for the financial year.

The Meeting resolved that the number of Board members elected by the Annual Gener-al Meeting shall amount to six members, and that Board fees of SEK 150,000 shall be paid to the Chairman and SEK 75,000 to the other external Board members. The AGM resolved to elect Staffan Eklöw as Chairman for the pe-riod until the next AGM has been held; Peter Engdahl, Magnus Granqvist, Kenneth Hägg-mark, Patrik Hansson (new election) and Per Anders Wärn (new election) were elected as Board members for the period until the next AGM has been held. The meeting resolved to appoint Grant Thornton, with Carl Niring as auditor for the Company.

The Meeting resolved to approve the Board’s proposal to authorise the Board to decide on a new share issue. In accordance with the Board’s proposal, the AGM resolved to change the lim-its for the share capital and the number of shares in the Articles of Association, whereby § 4 and § 5 of the Articles of Association were amended as follows:

§ 4. Share capital: Share capital shall total a minimum of SEK 1,000,000 and a maximum of SEK 4,000,000.

§ 5. Number of shares: The number of shares shall total a minimum of 25,000,000 and a maximum of 100,000,000 shares.

The Meeting resolved to introduce an incen-tive programme for the company’s employees – The share warrant scheme 2019/2022. With full exercise of the warrant scheme, the num-ber of shares in the Company will increase by 8.88%. It was noted that the Board clarified its intention not to propose the implementa-tion of any more incentive programmes until 2022, i.e. for the duration of this programme.

AGM 2020

The Annual General Meeting 2020 will be held on April 2 at 6pm at GT30 in Stockholm. Notice of the AGM will be published on the Company’s website, www.bublar.com, to-gether with all of the required documents pri-or to the AGM.

Nomination Committee

The AGM decides on how the Nomination Committee should be appointed. The mem-bers of the Nomination Committee shall be appointed by the Chairman of the Board who contacts the four shareholders controlling the largest number of votes as at 31 August 2019. Each of these four shareholders will be given the opportunity to appoint a representative to become a member of the Company’s Nom-ination Committee alongside the Chairman of the Board. If the Chairman of the Board, directly or through a company, is one of the four shareholders controlling the largest num-ber of votes as mentioned above, the Nomi-nation Committee shall consist of only four members (the Chairman of the Board and the three members appointed by the other three major shareholders). If any of these share-holders choose to waive their right to appoint a member, the right passes to the shareholder who, after these shareholders, has the larg-est shareholding. If a Board member leaves the Nomination Committee before work is completed, and if the Nomination Commit-tee deems it necessary, a replacement shall be appointed by the same shareholder who appointed the departing member or, if this shareholder is no longer one of the four larg-est shareholders, by the new shareholder be-longing to this group. The Nomination Com-mittee appoints its Chairman.

The composition of the Nomination Committee shall be published on the Company’s website as soon as it has been appointed and no later than six months before the AGM. In the event that a change in ownership structure occurs after the Nomination Committee has been assembled, the composition of the Nomination Committee may also be changed if the Nomination Com-mittee deems it necessary.

The Nomination Committee is tasked with submitting proposals to the Board of Direc-tors regarding the Board members to be elected by the Meeting, fees for the Chairman of the Board as well as the other members and the auditor, any remuneration for com-mittee work, the composition of the Board, the Chairman of the Board, decisions on the Nomination Committee, the Chairman of the Annual General Meeting and the choice of

Year % of votes % of capital

2019 44.42 44.42

2018 47.28 47.28

ANNUAL GENERAL MEETING NOMINATION COMMITTEE

AUDITORBOARD

CEO

OWNERS


auditor. The Company shall be responsible for any reasonable costs that the Nomination Committee deems necessary for the Nomina-tion Committee to be able to fulfil its mission.

Nomination Committee before the AGM 2020

The Nomination Committee’s proposal, its reasoned opinion on the proposed Board and information on proposed Board members are published in connection with the notice of the Annual General Meeting.

Nomination Committee members

• Staffan Ringvall, Chairman (appointed by Handelsbanken Fonder)

• Kenneth Häggmark (appointed by Kvantskum AB)

• Magnus Granqvist (appointed by MAGRAQ Invest AB)

• Patrick Hansson (appointed by Varde Holding AB)

• Staffan Eklöw (Chairman of the Board)

The Nomination Committee, according to a decision taken at the AGM on April 11 2019, is tasked with submitting proposals to the Board of Directors regarding the number of Board members to be elected by the Meeting, fees for the Chairman of the Board as well as the other members and the auditor, any remuner-ation for committee work, the composition of the Board, the Chairman of the Board, the decision on the Nomination Committee, the Chairman of the Annual General Meeting and the choice of auditor.

The composition of the Nomination Committee does not meet the Code’s requirements for inde-pendent members according to section 2.3. Mag-nus Granqvist, former CEO, and Kenneth Hägg-mark are members of the Nomination Committee, which is considered to be a deviation according to section 2.3. The majority of the members of the Nomination Committee must be independ-ent of the Company and company management in accordance with paragraph 2.3, which the Company satisfies. As the Company is young and

Magnus Granqvist and Kenneth Häggmark are each founding members of the Company and are still the third largest owners indirectly, it has been considered reasonable that these owners should be members of the Nomination Committee.

Board of DirectorsThe Board of Directors is the highest deci-sion-making body after the AGM and Bublar’s highest executive body.

The Board’s tasks

According to the Swedish Companies Act, the Board is responsible for Bublar’s management and organisation, which means that the Board is responsible for, among other things, setting goals and strategies, ensuring routines and sys-tems for evaluating established goals, continu-ously evaluating Bublar’s financial position and results and evaluating the operational manage-ment. The Board is also responsible for ensuring that the annual accounts and consolidated ac-counts and the interim reports are prepared in a timely manner. In addition, the Board appoints the CEO. The Board members are elected each year at the Annual General Meeting for the pe-riod until the end of the next Annual General Meeting.

The Board’s size and composition

According to Bublar’s Articles of Association, the Board of Directors shall consist of at least three and a maximum of eight members, to the extent that they are elected by the AGM. The 2019 Annual General Meeting appointed six ordinary Board members: for the period until the next AGM Staffan Eklöw was elected Chairman, and Peter Engdahl, Magnus Gran-qvist, Patrik Hansson, Kenneth Häggmark and Per Anders Wärn were elected as ordinary Board members. In June 2019, Board mem-ber Peter Engdahl passed away, from then onwards the Board consisted of five ordinary Board members.

Maria A. Grimaldi resigned as a Board mem-ber prior to the 2019 AGM and was elected CEO on April 10 2019.

During the year, the composition of the Board did not comply with the Code’s requirements regarding Board members. The composition of the Nomination Committee does not meet the Code’s requirement that no more than one elected member may work in the Com-pany’s management team or a subsidiary. Magnus Granqvist, former CEO, and Kenneth Häggmark are senior executives. However, the majority of the members elected by the AGM are independent in relation to the Com-pany and company management, and two of them are also independent in relation to the Company’s major shareholders.

Chairman of the Board

The Chairman of the Board is appointed by the Annual General Meeting. The Chairman’s task is to organise and lead the Board’s work so that it is conducted efficiently and so the Board fulfils its commitments. Staffan Eklöw was appointed Chairman of the Board at the Annual General Meeting 2019 for the period until the next Annual General Meeting.

The Board’s working methods

The Board’s work is further regulated by the written formal work plan that the Board an-nually reviews and determines at the Board meeting following election. The formal work plan regulates aspects including the Board’s working methods, duties, Bublar’s decision order, the Board’s meeting order, the Chair-man’s duties and an appropriate division of work between the Board and the CEO. In-structions regarding financial reporting and instructions to the CEO are also adopted at the time of the Board meeting following election. The Board shall further ensure that Bublar’s external communication has an open nature and is correct, relevant and clear. The Board is also responsible for establishing the required guidelines and other policy documents, such as the communication and information policy.

The Board’s work in 2019

The formal work plan for the Board of Directors describes, among other things, which items

should be present on the agenda at each Board meeting, the Board meeting following election, and which items should be present at one or more of the Board meetings during the year. In 2019, the Board held 15 meetings, of which 9 were scheduled. The scheduled Board meet-ings include a report from the CEO, including information related to business operations, significant events for the Group and financial re-ports for the period. Important points at Board meetings in 2019 were issues regarding the Company’s strategy, acquisitions, capital and liquidity forecasts, interim reports and annual reports, etc.

Committees of the Board of Directors

The Board of Directors have not had any com-mittees in 2019.

The CEO and other senior executives duties

During the year, the CEO and management team worked with the Company’s business development and growth strategy, as well as the integration of completed acquisitions. The management team has also worked on the development of existing and new custom-er collaborations and partnerships.

In addition, the CEO has presented interim reports, proposals for investments in existing gaming projects, the status regarding ongo-ing operations, proposals for the acquisition of companies and the Company’s liquidity.

Remuneration to the CEO and other senior executives

Guidelines adopted by the Annual General Meeting in 2018 mean that remuneration to the CEO and other senior executives consists of basic salary, other benefits and pension. The CEO and other senior executives are paid a monthly salary on market terms as well as customary employee benefits. The fixed sala-ry is generally reviewed once a year and must take into account the individual’s qualitative performance.

The 2019 Annual General Meeting resolved to introduce a warrant scheme for the Compa-ny’s employees.

Terms of employment for the CEO and other senior executives

Both Bublar Group and the CEO must observe a six month notice period. In the event of ter-mination by the Company, the CEO is entitled to severance payments corresponding to six monthly salaries, based on their fixed month-ly salary. For other senior executives, Bublar Group must observe the notice period in ac-cordance with the Employment Protection Act and the employee must observe the same no-tice period, which is a maximum of 3 months. Other senior executives are not entitled to any additional remuneration in connection with the termination of their employment. Other senior executives have customary terms of employment.

The Board of Directors have the right to devi-ate from the above guidelines if they consider that there are special reasons to do so in par-ticular cases.

Guidelines adopted by the Board of Directors and proposed to the Annual General Meeting 2019. For the 2020 Annual General Meeting, the Board has proposed the same guidelines for remuneration to senior executives as last year.

Evaluation of the Board of Directors and the CEO

The Board shall evaluate the its own work an-nually with the aim of developing the Board’s working methods and efficiency. The results of the evaluation shall be reported to the Nomination Committee. The Board of Direc-tors shall continuously evaluate the CEO’s work. At least once a year, the Board of Di-rectors shall deal with this matter specifically, with no one from the Company management in attendance.

Audit and control

EXTERNAL AUDIT

The auditor will examine Bublar’s annual re-port and accounts, as well as the Board and the CEO’s administration. After each financial year, the auditor shall submit an auditor’s re-port and a group auditor’s report to the AGM.

According to Bublar’s articles of association, one to two auditors with or without deputies or a registered accounting firm must be ap-pointed. At the AGM 2019 Grant Thornton was appointed with Carl Niring as the Auditor in charge.

INTERNAL AUDIT AND CONTROL

The Company has not set up a special function for internal control, so the task is fulfilled by the Board. Internal control includes control of Bublar’s organisation, routines and actions. The purpose is to ensure that reliable and accurate financial reporting takes place, that Bublar’s financial reporting is prepared in ac-cordance with law and applicable accounting standards, and that other requirements are followed. The system for internal control also aims to monitor compliance with policies, principles and instructions. In addition, the protection of Bublar’s assets is monitored, and it is checked whether Bublar’s resources are utilised in a cost-effective and appropriate manner. Furthermore, internal control takes place through monitoring implemented infor-mation and business systems and through the analysis of risks.

Information and communication

The Company follows a communication and information policy established on the ba-sis of a Board decision prior to the listing on Nasdaq Growth First North on November 11 2019. Policies and guidelines are considered important to ensure the correct accounting, reporting and disclosure. Financial communi-cation is through the annual report, interim re-ports, press releases, and on Bublar’s website www.bublar.com.

C O R P O R A T E G O V E R N A N C E

R E P O R T

Meetings 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Staffan Eklöw

Peter Engdahl

Maria A Grimaldi

Patrik Hansson

Kenneth Häggmark

Magnus Granqvist

Per Anders Wärn

The Board’s attendance in 2019

PresentAbsent


Group relationshipsThe Group currently consists of the parent company Bublar Group AB (publ) and the wholly owned subsidiaries Vobling, Sayduck and Virtual Brains. The Company currently has offices in Stockholm (head office), Helsinki, Manila, and a sales office that opened in Sin-gapore in February 2020.

The consolidated accounts include the Parent Company and subsidiaries’ operations until De-cember 31 2019. Subsidiaries are all companies in which the Group has the right to govern the Company’s financial and operational strategies in order to obtain financial benefits. Results for subsidiaries, acquired or divested during the year, are recognised from the date of entry into force of the acquisition or up to the date of di-vestment, as applicable.

The consolidated accounts are presented in Swed-ish krona (SEK) which is also the Parent Company’s accounting currency. Results for subsidiaries, ac-quired or divested during the year, are recognised from the date of entry into force of the acquisition or up to the date of divestment, as applicable.

Amounts recognised in the subsidiaries’ fi-nancial statements have been adjusted where necessary to ensure compliance with the Group’s accounting principles. Transactions are eliminated on consolidation, Swedish Annual Accounts Act 7:13. Intra-group trans-actions and balance sheet items are elimi-nated in full upon consolidation, including unrealised gains and losses on transactions between group companies. In the event that unrealised losses on intra-group assets are reversed upon consolidation, the underlying asset’s impairment needs are also assessed from a group perspective.

The Company’s three subsidiaries have differ-ent focus areas, end customers and monetisa-tion: Vobling, focusing on the Work business area, Sayduck for Shop and Virtual Brains for Play. Vobling focuses on training, streamlining and improving manufacturing processes and developing sales tools to companies and or-ganisations with the help of AR/VR. Sayduck helps e-commerce companies strengthen their digital business. Sayduck has a technical platform with a scalable business model and a software-as-a service offering. The technol-ogy enhances the customer experience for consumers who shop for products online.

Virtual Brains is the Group’s gaming devel-opment studio in Stockholm. The studio has developed a proprietary platform that focus-es on mobile gaming within the AR niche with the support of GPS functionality and real-time simulation.

The operationsBublar is an XR technology company special-ised in Augmented Reality (AR) and Virtual Reality (VR). The Company offers XR solutions in E-commerce, Entertainment, Training and Manufacturing. The Company was founded at the end of 2015 and since then has developed its business model and organisation, partly or-ganically through the recruitment of competent staff, and partly through acquisitions.

Business conceptBublar’s business concept is to develop prod-ucts and services based on XR technology aimed at improving the efficiency, productivi-ty and experience of production, training and sales processes in the business areas Work, Shop and Play.

Operations during the yearWork business area – customer projects and collaborations

On 22 March, Vobling Asia Inc. in Manila was granted permission to offer its services to com-panies in the Philippines by the Philippine Eco-nomic Zone Authority (PEZA). Thanks to the new extended licence, Bublar Group has the oppor-tunity to expand in the large market in the Philip-pines as well. At the same time, Vobling Asia Inc. was commissioned by CIMB Bank Philippines to create AR applications to better visualise and explain the bank’s services. The parent com-pany, CIMB Group, is the fifth largest bank in Southeast Asia. Further projects were received from the real estate companies ArthaLand Corp. and Ortigas & Company. The latter is one of the largest real estate companies in the Philippines.

The 15 May was the world premiere of the up-coming VR headset VIVE Pro Eye, where the user can control part of the experience with their eyes. Swedish company Tobii is behind the development and Bublar Group’s sub-sidiary Vobling is developing one of the first

programs using the new technology that is applied to a training platform in VR for SJ to bolster the training of the Company’s staff.

On 21 August, Vobling AB received a VR assign-ment from Norwegian train operator Vy, one of the Nordic region’s largest transport compa-nies, to develop an advanced app for training and simulation in Virtual Reality with a focus on fire and smoke development onboard.

In September, Vobling signed a global frame-work agreement with Scania for services relat-ed to CGI (Computer Generated Imagery), AR (Augmented Reality) and VR (Virtual Reality). The agreement, under which Vobling is one of two selected suppliers, clearly signals Scan-ia’s goal to take the use of new digital technol-ogies to the next level. The framework agree-ment is not conditional on any order value to start with but provides a strong position for assignments during the agreement period.

Another strategic order came on 7 October from SAAB to develop educational and train-ing programmes based on Virtual Reality (VR) technology, for a product within the airborne surveillance segment.

On 30 October, Kalmar (Cargotec Sweden AB) became a new customer where Vobling will de-velop sales and marketing support for products in the forklift truck segment.

On 8 November, Vobling won a tender for a framework agreement to provide The Royal Swedish Opera with immersive media. The agreement, which spans four years, means that Vobling becomes the Royal Opera’s sup-plier and partner for these solutions over the contract period.

Shop business area – acquisition of Sayduck

On 3 July, Bublar acquired Finnish AR company Sayduck, with offices in Helsinki and Vilnius. The purchase price was agreed at SEK 13.5 million and has been paid in the form of 3,064,424 newly issued shares in Bublar Group AB, which corresponds to a dilution for existing owners of about 7%. In addition, a possible perfor-mance-based additional purchase price has been agreed (to be paid in newly issued shares), which for existing owners would lead to further dilution of a maximum of 6.5%, correspond-ing to 3,064,424 shares. The performance targets must be met by the end of 2020 and

The Board of Directors and CEO for Bublar Group AB (publ), Corporate ID number 559019-7462, with its headquarters in Stockholm, hereby submit the annual report for the financial year January 1 2019 – December 31 2019 The annual financial statements are prepared in Swedish krona, SEK.

B O A R D O F D I R E C T O R ’ S

R E P O R T


the breakpoint for these is about 200% of Say-duck’s monthly licence income at the time of the acquisition. Bublar Group also has the option to choose to pay the additional purchase price in cash of SEK 20 million instead of in shares if the value of the item were to become dispro-portionately large. Sayduck’s shareholders have entered into a 1-year lock-up agreement for the shares they received in the transaction.

Sayduck is a leading operator in 3D Augmented Reality, with a technical platform aimed at the global e-commerce market.

On September 25, an agreement was signed with Pixels.com, headquartered in Santa Monica, California. Pixels.com offers a digital marketplace for print-on-demand art, design and photography that has been made availa-ble in 3D and AR formats by Sayduck, a sub-sidiary of Bublar Group.

On November 18, Sayduck launched a pho-to-realistic rendering feature with Vallila In-terior, a leading Finnish textile company that uses Sayduck’s platform to offer better visual-isation of its products.

Play business area – development of platform and games

In the Play business area that includes the Com-pany Virtual Brains AB, the Company has es-tablished itself as a gaming studio with unique expertise in so-called ‘real-world games’. The games are developed based on our own plat-form that enables the studio to create advanced GPS- based multiplayer games.

The strategy for the gaming studio is based on four business opportunities in game devel-opment of own free-to-play titles (e.g. Other-world Heroes), game development based on well-known brands/IP (e.g. Hello Kitty); game development on behalf of global publishers and game development in collaboration with other game studios.

In the first quarter, the foundation for mo-bile-controlled mobile games was laid through the launch of the game Glowing Gloves, where the possibilities offered by ARKit are used to capture movements via the mobile camera and make them the driving function in a game. The game has not yet generated revenue in line with our expectations. Apple noted that Bublar used their AR technology in a new way.

The fantasy-based MMO game Otherworld Heroes, built on Bublar’s own gaming plat-form, is the world’s first ocation-based multiplayer-functionality game where players both see and collaborate with each other on the map in real time. In April, a milestone in devel-opment was passed with the launch of a so-called closed beta version of the game. The technology was then tested with over 6,000 players from 70 countries with good KPIs. The result was concrete, valuable feedback and data to use in future development. The game has been further developed since then and the next beta phase began in February 2020 ahead of its launch later in the year.

On August 22, Bublar signed a collaboration agreement with Google Maps Platform in the development of the location-based mobile game Hello Kitty AR: Kawaii World. By now integrating Bublar’s gaming platform with the Google Maps Platform, even better gaming experiences can be created where the real world is the playing field.

The collaboration with Japanese company Sanrio was expanded on September 17 and li-censing rights were secured for distribution of the mobile game Hello Kitty AR: Kawaii World in a further 46 countries. Additional regions include Japan, South Korea, Hong Kong, Tai-wan and Southeast Asia and South America. Bublar Group already holds licensing rights for Europe, the Middle East and Africa (EMEA) as well as India, Russia, New Zealand and Australia. With the additional regions Bublar Group has secured rights to distribute the game in more than 160 countries to approxi-mately 5 billion people.

Bublar Group began collaborating with Am-azon Game Tech on November 21, at the same time as opening pre-registration for the location-based mobile game Hello Kitty AR: Kawaii World that will be launched in 2020. The game will use Amazon Game Tech’s back-end infrastructure.

Changes to senior executives

Kenneth Häggmark was nominated the new CTO (Chief Technical Officer) on January 25 and succeeds Per Granå who chose to leave the post and the Company. Häggmark (MSc in Engineering) is one of Bublar’s founders, and is the longstanding Director of Innovation and a Company Board member.

Maria A Grimaldi, was appointed the new CEO on April 10, taking office on May 13. Founder and current CEO Magnus Granqvist continues to work in the Company in a new strategic role that focuses on creating growth in the Company’s gaming studio. Maria A Grimaldi has a solid experience from comput-er games and technology related industries, has worked with financial and business strate-gic investment issues and has operational ex-perience, including through her years at the head of ANGI – The Association for the Nordic Game Industry.

Per Anders Wärn and Patrik Hansson were elected new Board members at the Annual General Meeting on April 11. For ten years, Per Anders Wärn played an active role in the management of Gartner, Connecticut, USA, where he was responsible for Gartner’s global consulting business. At the time, Patrik Hans-son was working as a business developer at Vobling AB. Patrik was the principal owner and founded Bublar’s wholly owned subsidi-ary Vobling AB. Patrik has previously worked in both public and private entities, and has held a number of CEO positions and manage-rial roles over the last 25 years.

Bublar Group’s Board member Peter Eng-dahl passed away after complications in con-nection with a short period of illness. Peter had been a member of the Board since 2017.

Resolutions of the Annual Gen-eral MeetingOn April 11, the Annual General Meeting was held, whereby resolutions were made in addi-tion to what must occur in accordance with the Companies Act (2005: 551) or the Articles of Association. The Annual General Meeting re-solved, among other things, on an authorisation for the Board of Directors to, during the period until the next Annual General Meeting and on one or more occasions, with or without devia-tion from the shareholders’ preferential rights, resolve on a new share issue, and/or an issue of convertibles, and/or warrants. Payment may be made in cash, in kind, through set-off of claims, or otherwise be conditional.

In addition, it was decided to introduce a tar-geted incentive programme for employees and senior executives within Bublar Group. The Meeting resolved to issue a maximum of 4,000,000 share warrants under the pro-

gramme in accordance with the terms of the notice. The Board clarified its intention not to propose the implementation of any more in-centive programmes until 2022, which is for the duration of this programme.

FinancingBublar completed a targeted new share issue on July 11 2019 of 3,077,232 shares, which will provide the Company with approximately SEK 10 million. The new share issue was sub-scribed to by a few qualified investors. The price per share was SEK 3.25. The new share issue involves a dilution of approximately 6.5 percent based on the total number of shares in the Company after the transaction.

On October 26, Bublar decided on an implemented a new cash share issue of 7,750,287 shares. The subscription price was set at SEK 5.22 per share. Through the new share issue, the Company received approxi-mately SEK 40 million before transaction costs. The subscription price of SEK 5.22 per share corresponded to a discount of about 6.6% com-pared to the volume-weighted average price for the last 30 trading days. The transaction was car-ried out through a book-building process. After the new issue, the total number of shares and votes in the Company amounts to 54,913,141, which means a dilution effect of approximately 14% based on the total number of shares in the Company after the transaction. Bublar Group is listed on Nasdaq First North Growth Market from November 11 2019. The last day of trading in the stock on NGM Nordic MTF was Friday 8 November.

Annual turnoverNet sales during the period amounted to SEK 17.1 million (3.5 ). The increase is mainly due to the fact that the acquisition of Vobling in Octo-ber 2018 is included in the consolidated figures. The turnover also includes Sayduck, which was acquired on July 3 2019. EBITDA amounted to SEK -31.2 million (-19.9). The negative result be-fore depreciation is explained by costs for the development of the technical platform and the games of just over SEK 21 million, an increase of approximately SEK 8 million from the previous year. The costs are significant because of the production in the studio of two relatively large productions in parallel. In addition, during the first quarter, earnings were burdened by in-creased costs related to relocation to common Group premises.

EBITA amounted to SEK -45.8 million (-24.8) and includes depreciation related to goodwill of SEK 11.3 million and development costs of SEK 2.3 million on a group basis.

Vobling’s net sales totalled SEK 15.6 million for the full year 2019. EBITDA amounted to SEK 1.5 million for the full year 2019. In 2018, the business had a split financial year, so a comparison with 2018 is not relevant.

The subsidiary Sayduck was acquired in July 2019. Net sales since then amounted to SEK 1.7 million. The number of 3D views on the platform increased in the fourth quarter compared with the fourth quarter of the pre-vious year by approximately 55 percent and amounted to just over 1.6 million views.

Games and platforms are developed with-in Virtual Brains. Their costs amounted to approximately SEK 21 million in 2019, and include some costs that are to some extent group-wide.

Net debtThe Group’s net debt amounted to SEK -35.5 million at the end of the period and reflects a cash balance of just over SEK 37 million in relation to interest-bearing liabilities of ap-proximately SEK 1.4 million, which are found in Sayduck and consist of favourable loans for development companies.

Equity/Asset ratioThe Groups equity/asset ratio totalled 90% at the end of the period.

Capital needsBublar carried out secondary issues raising approximately SEK 50 million in order to fi-nance the development of games and the gaming platform, and support the reorienta-tion towards larger companies and the com-moditisation of Vobling’s and Sayduck’s op-erations. Cash amounted to just over SEK 37 million at the end of the period.

We believe that there is a global significant commercial potential in both games projects but cannot with any certainty anticipate future revenue levels. Therefore, the outcome of the games’ revenue generation will directly affect the Company’s future capital needs.

The Board of Directors therefore considers it crucial that the games will be able to generate revenue, otherwise the existing working capi-tal is not sufficient over the next 12 months for the games activities. If the games’ proceeds are not developing in accordance with the Board's assessments, the Company will have to consider measures including additional fundraising.

There is a great interest in investing in com-panies that are trying to develop applications and products based on XR technology both among professional and individual investors, which means that the Board assesses the pos-sibilities of acquiring additional financing as good. The Board of Directors has a mandate from the Annual General Meeting to issue shares and/or convertibles and/or warrants in order to manage the financial situation.

RisksThe market for the services and products that Bublar is developing is currently in a strong development phase. Market dynamics mean that there is a significant risk that the projects Bublar has invested in will be received with a weak interest from end customers, and thus expected revenues are not generated with subsequent negative effect on earnings and cash flows. Capitalised development ex-penditure may also need to be written down. If a commercial launch of a project is delayed or results in lower revenues than anticipated, it may have a material negative effect on the Company’s operations, earnings and financial position.

Delays in planned and ongoing customer or game projects may have a negative effect on cash flow, revenue and operating margin. Delaying one or more of the Company’s de-veloped games may have a material negative impact on the Company’s operations, earn-ings and financial position. Both the mobile game and XR market are characterised by rapid technological and innovative devel-opment, and several of Bublar’s current and future competitors may have a competitive advantage in the form of a longer history, a more established brand and greater financial, technical and marketing resources.

The Group is a small organisation and may therefore be considered highly dependent on a few key individuals. Furthermore, the part-ners with whom the Company has chosen to cooperate may be forced to pursue priorities other than the Company’s own with the sub-sequent risk of delays and not completing the projects. See the Company description for the listing on the Nasdaq First North Growth Market for a more detailed description of the risk factors which Bublar faces.

See the Company description for the listing on the Nasdaq First North Growth Market for a more detailed description of the risk factors which Bublar faces.

B O A R D O F D I R E C T O R ’ S

R E P O R T


I N CO M E STAT E M E N T

GROUP PARENT COMPANY

SEK thousands Note 2019 2018 2019 2018

Operating income

Net sales 1 17,081 3,472 319 511

Capitalised work for own account 2 1,000 24 - 40

Other operating income 491 487 312 151

Total income 18,572 3,983 631 702

Operating expenses

Purchase of goods and services -4,499 -187 -20,426 -15,194

Other external expenses 1,2 -16,650 -7,870 -11,943 -5,498

Employee costs 4 -28,123 -15,774 -786 -673

Other operating expenses -414 -23 -95 -5

Profit before depreciation/ amortisation and impairments

-31,114 -19,871 -32,619 -20,668

Depreciation, amortisation and impairment of fixed assets 2, 8, 9 -14,629 -4,859 -4,893 -4,516

Operating profit/loss -45,743 -24,730 -37,512 -25,184

Profit/loss from financial items

Interest income and similar profit/loss items

10 102 - - -

Interest expense and similar profit/loss items 11 -28 -95 -22 -94

Profit/loss after financial items -45,669 -24,825 -37,534 -25,278

Appropriations

Group contributions received - - 816 -

Pre-tax profit -45,669 -24,825 -36,718 -25,278

Taxes 12 -4,797 -295 -2,506 -

Profit/loss for the year -50,466 -25,120 -39,224 -25,278

Of which is attributable to shareholders in the Parent Company

-50,466 -25,120

Earnings per share

Basic earnings per share -0.92 -0.63

Diluted earnings per share -0.86 -0.61

Number of shares

At the end of the period, before dilution 54,913,141 40 ,051,036

At the end of the period, after dilution 58,913,141 41,021 ,198

Average number of shares

At the end of the period 47,482,089 32,658,241

At the end of the period, after dilution 49,967,170 33,628,403

M U LT I P L E Y E A R CO M PA R I S O N

D I ST R I B U T I O N O F N O N - R E ST R I C T E D E Q U I T Y

GROUP

2019 2018 2017 2016

Net sales SEK thousands 17,081 3,472 - -

Profit/loss after financial items SEK thousands -45,669 -24,825 -13,907 -7,919

Total assets SEK thousands 106,155 92,972 39,577 13,449

Number of employees 55 23 16 10

Equity/Asset ratio % 90% 91% 82% 55%

PARENT COMPANY

2019 2018 2017 2016

Net sales SEK thousands 319 511 - -

Profit/loss after financial items SEK thousands -37,534 -25,278 -8,731 -4,058

Total assets SEK thousands 117,739 96,289 47,221 16,115

Number of employees - - - -

Equity/Asset ratio % 97% 96% 86% 66%

SEK thousands 2019

The following accumulated loss shall be treated by the Annual General Meeting (SEK):

Premium reserves 186,691,217

Accumulated deficit from the previous year -37,857,434

Profit/loss for the year -39,224,422

109,609,362

The Board of Directors proposes that the profit/loss be distributed so that they are trans-ferred to the following accounting period 109,609,362

109,609,362

BUBLAR GROUP. ANNUAL REPORT 2019 51 50.

B A L A N C E S H E E T


SEK thousands Note 31/12/2019 31/12/2018 31/12/2019 31/12/2018

ASSETS

Fixed assets

Intangible assets

Capitalised development expenditure 2 10,087 9,849 13,797 18,420

Goodwill 8 50,945 47,876 - -

Total intangible assets 61,032 57,725 13,797 18,420

Property, plant and equipment

Equipment, tools, fixtures and fittings 9 1,012 527 484 360

Total fixed assets 1,012 527 484 360

Financial assets

Participations in group companies 13 - - 65,297 50,055

Deferred tax assets 12 - 4,744 - 2,506

Other total financial fixed assets 353 164 346 -

Total financial fixed assets 353 4,908 65,643 52,561

Total fixed assets 62,397 63,160 79,924 71,341

Current assets

Current receivables

Accounts receivable – trade 3,268 1,700 5 7

Intra-Group receivables 2,445 -

Other receivables 14 1,477 7,026 834 6,852

Prepaid expenses and accrued income 15 1,789 777 780 195

Total current receivables 6,534 9,503 4,064 7,054

Cash and cash equivalents

Cash and cash equivalents 16 37,224 20,309 33,751 17,894

Total cash and cash equivalents 37,224 20,309 33,751 17,894

Total current assets 43,758 29,812 37,815 24,948

TOTAL ASSETS 106,155 92,972 117,739 96,289

B A L A N C E S H E E T


SEK thousands Note 31/12/2019 31/12/2018 31/12/2019 31/12/2018

EQUITY AND LIABILITIES

Equity

Restricted equity

Share Capital 17 1,569 1,144 1,569 1,144

Share capital in process of registration 17 - 28 - 28

Fund for development expenses - - 3,535 8,158

Total restricted equity 1,569 1,172 5,104 9,330

Non-restricted equity

Other capital/premium reserves 186,392 125,447 186,691 125,447

Other equity including profit/loss for the year

-92,365 -42,246 - -

Retained earnings - - -37,858 -17,203

Profit/loss for the year - - -39,224 -25,278

Total non-restricted equity 94,028 83,201 109,609 82,966

Total equity 95,596 84,373 114,713 92,296

Long-term liabilities

Deferred tax liabilities 12 122 122 - -

Liabilities to credit institutions 18 1,249 - - -

Total long-term liabilities 1,371 122 0 0

Current liabilities

Trade creditors 2,106 1,116 1,543 341

Liabilities to group companies - - - 2,064

Tax liabilities 60 1,366 - -

Other liabilities 3,543 2,501 - -

Current liabilities to credit institutions 18 - 1,000 - 1,000

Accrued expenses and deferred income 19 3,479 2,494 1,483 588

Total current liabilities 9,187 8,477 3,027 3,993

TOTAL EQUITY AND LIABILITIES 106,155 92,972 117,739 96,289


C AS H F LOW STAT E M E N T


SEK thousands Note01/01/2019 31/12/2019

01/01/2018 31/12/2018

01/01/2019 31/12/2019

01/01/2018 31/12/2018

Operating activities

Profit/loss after financial items -45,669 -24,825 -37,534 -25,278

Adjustments for non-cash items 20 14,905 4,859 4,913 4,516

Income tax paid -1,364 83 - -

Cash flow from operating activities before changes in working capital

-32,128 -19,883 -32,621 -20,762

Cash flow from changes in working capital

Decrease (+) /increase (-) of provisions -997 340 2 -7

Decrease (+) /increase (-) of short-term receivables

4,571 -5,235 3,804 -6,077

Decrease (+) /increase (-) of trade creditors

884 -278 1,203 -362

Decrease (+) /increase (-) of short-term liabilities 1,154 -1,509 -1,170 -901

Cash flow from operating activities

-26,518 -26,565 -28,781 -28,109

Investing activities

Acquisition of equipment, tools, fixtures and fittings

-865 -172 -494 -111

Disposal of equipment, tools, fixtures and fittings

- - 80 -

Other changes in financial fixed assets -216 - -346 -

Investments in financial assets -7 - - -

Disposal/reduction of financial fixed assets

37 - - -

Capitalised expenditure for production costs

-2,106 -24 - -40

Acquisition of group companies -14,139 -49,166 -14,822 -50,005

Cash flow from investing activities

-17,296 -49,362 -15,582 -50,156

Financing activities

Shareholder contribution 16 - -

New share issue* 61,709 77,109 61,220 77,109

Borrowings 19 - - -

Repayment of borrowings -1,000 -1,500 -1,000 -1,500

Cash flow from financing activities

60,728 75,625 60,220 75,609

Currency translation differences in cash and cash equivalents −2 15 - -

Changes in cash and cash equivalents 16,914 -287 15,856 -2,656

Cash and cash equivalents at the beginning of the year 20,309 20,596 17,894 20,550

Cash and cash equivalents at the end of the year

37,224 20,309 33,751 17,894

*Values after share issue costs

C H A N G E S I N E Q U I T Y

GROUP

SEK thousandsShare Capital

Unregistered share capital

Other capital

Other equity incl. retained earnings

Equity attributable to shareholders in the

Parent Company

01/01/2019 1,144 28 125,447 -42,245 84,374

Profit/loss for the year -50,466 -50,466

Registration process, share issue 28 -28

Non-cash issue, 3 July 3019 88 13,350 13,438

New share issue, 24 July 2019 88 9,913 10,001

New share issue, 12 November 2019 221 40,235 40,456

Issue expenses -2,674 -2,674

Share warrants, Bublar Group AB 420 15 435

Transfer untaxed reserves -299 299 0

Currency translation difference 32 32

31/12/2019 1,569 0 186,392 -92,365 95,596

PARENT COMPANY

SEK thousandsShare Capital

Share capital in pro-cess of registration Other capital

Other equity incl. retained earnings

Equity attributable to shareholders in the

Parent Company Total equity

01/01/2019 1,144 28 9,930 125,447 -44,253 92,296

Profit/loss for the year -39,224 -39,224

Change for the year development costs

-4,623 4,623 0

Registration process, share issue 28 -28 0

Non-cash issue, 3 July 3019 88 13,350 13,438

New share issue, 24 July 2019 88 9,913 10,001

New share issue, 12 November 2019 221 40,235 40,456

Issue expenses -2,674 -2,674

Share warrants, Bublar Group AB 420 420

31/12/2019 1,569 0 5,307 186,691 -78,854 114,713


A D D I T I O N A L I N FO R M AT I O N

Accounting and valuation principles

The Group’s and Parent Company’s financial reports have been prepared in accordance with the Annual Accounts Act and BFNAR 2012:1 (K3). The accounting principles used are unchanged compared to the previous year. The most important accounting and val-uation principles used in the preparation of the financial reports are summarised below.

Consolidated accounts

The consolidated accounts include the Parent Company and all of the subsidiaries’ opera-tions until the Parent Company’s closing date.

Subsidiaries are companies in which the Parent Company directly or indirectly holds more than 50 percent of the voting rights or otherwise has a controlling influence. A con-trolling influence means the power to govern a company’s financial and operating policies with a view to deriving economic benefits. The Group achieves and exercises controlling influence by holding over half of the votes. Special purpose entities are also consolidated if the Parent Company has a controlling influ-ence, whether or not there is an ownership interest.

All subsidiaries have the same balance sheet date and apply the Parent Company’s valua-tion principles. The consolidated accounts are presented in Swedish krona (SEK) which is also the Parent Company’s accounting currency. Results for subsidiaries, acquired or divested during the year, are recognised from the date of entry into force of the acquisition or to the date of disposal, as applicable. Intra-group transactions and balance sheet items are elim-inated in full upon consolidation.

Consolidation method

The consolidated accounts are prepared in accordance with the acquisition method and are based on the unit view. This means that the acquisition analysis is prepared when the acquirer has a controlling influence. From this point onwards, the acquirer and the acquired entity are regarded as an accounting unit. All assets (including goodwill) and liabilities, as well as income and expenses, are included in their entirety even for partly owned subsidi-aries. The acquisition value for subsidiaries is calculated at the sum of the fair value at the

time of acquisition of assets paid plus liabili-ties incurred and taken over as well as issued equity instruments, expenses directly attribut-able to the business acquisition and any addi-tional purchase price. The acquisition analysis determines the fair value, with a few excep-tions, at the time of acquisition of acquired identifiable assets and assumed liabilities as well as non-controlling interest. Non-con-trolling interest is measured at fair value at the time of acquisition. If the acquisition value of the business exceeds the estimated market value of the expected net assets according to the acquisition analysis, the difference is re-ported as goodwill.

From the date of acquisition, the consolidat-ed accounts include the acquired company’s income and expenses, identifiable assets and liabilities as well as any goodwill or negative goodwill that has arisen.

Goodwill

Goodwill is the difference that arises if the ac-quisition value of the acquired unit is higher than the value of the acquired unit’s net as-sets. At the time of acquisition, the goodwill arising is recognised as an asset in the balance sheet

Translation of foreign subsidiaries

Upon consolidation, assets and liabilities are translated, including goodwill and other con-solidated surplus and deficit values, to SEK at the closing day rate. Income and expenses are translated to SEK according to the average exchange rate during the reporting period, which is an approximation of the transaction rate. Exchange rate differences that arise when translating foreign operations are re-ported in equity.

Income recognition

The income is recognised at the fair value of what has been or will be received. The Company therefore recognises the income at nominal value (invoice amount) if the com-pensation is received in liquid funds directly upon delivery. Deductions are made for any discounts given.

Leasing

Lease agreements at the time of the lease are classified as either financial or operat-ing leases. A financial lease agreement is a lease under which the financial risks and benefits associated with owning an asset are essentially transferred from the lessor to the lessee. An operating lease agreement is a lease agreement that is not a financial lease agreement. Operating lease agree-ments are expensed linearly over the leas-ing period. The group and the Parent Com-pany have no financial lease agreements.

Remuneration to employees

SHORT-TERM EMPLOYEE REMUNERATION

Short-term employee remuneration, such as wages, paid holiday leave and bonuses, is remuneration to employees that’s due within 12 months of the balance sheet date in the year in which the employee earned the remuneration. Short-term employee re-muneration is valued at the undiscounted amount that the Company is expected to pay as a result of the unused right.

DEFINED CONTRIBUTION PENSION PLANS

The Company pays fixed premiums to other legal persons for multiple insurance policies for individual employees. The Company has no legal or informal obligations to pay addi-tional fees in addition to payments of the set fee which is recognised as an expense in the period in which the relevant service is per-formed.

Interest income

Interest income is recognised as it is earnt. In-terest income is calculated on the basis of the return on the underlying asset according to the effective interest rate method.

Income tax

The reporting of income tax includes current tax and deferred tax. For items stated in the income statement, related tax effects are also stated in the income statement. The tax effects of items recognised directly in equity are also recognised in equity. Deferred tax is calculated on all temporary differences. A

temporary difference exists when the report-ed value of an asset or liability differs from the tax value. Deferred tax receivables regarding loss carry forwards or other future tax deduc-tions are recognised to the extent it is likely that the deduction can be offset against future tax surpluses.

Current tax is income tax for the current finan-cial year which relates to taxable profit for the year as well as the portion of income tax for previous financial years that has not yet been recognised. Current tax is valued at the prob-able amount according to the tax rates and tax rules that apply on the balance sheet date.

Capitalised expenditure for development work and similar

Capitalised expenditure on development and similar work is recognised at acquisition value less accumulated depreciation according to plan and any impairment.

Expenses that are directly attributable to the development phase of a project are reported as an intangible fixed asset, provided they ful-fil the following requirements:

• It is technically possible to complete the asset so that it can be used or sold.

• The Company intends to complete the asset and use or sell it.

• The Company has the prerequisites to use or sell the asset.

• It is probable that the asset will generate future financial benefits.

• There are sufficient resources to complete the asset and to use or sell it.

• The development expense can be meas-ured in a reliable way.

Development expenses that do not fulfil these criteria for capitalisation are writ-ten off as they arise. The acquisition value of expenses brought forward include the expenses for the production of the asset. Directly attributable expenses include em-ployee costs arising from the work in de-velopment, together with a suitable pro-portion of indirect costs. Depreciation of project development in progress starts at the time of completion.

The following useful lives are applied:

Capitalised expenditure for development work and similar projects 5 years

Goodwill

Goodwill is recognised at cost less accumu-lated amortisation and any impairment losses. Assets are amortised on a straight-line basis over the estimated useful life of the assets. The useful life is reviewed on each balance sheet date. The following useful lives are applied:

Goodwill 5 years

Fixed assets

Property, plant and equipment is recognised at cost less accumulated depreciation and any impairment losses. Assets are depreciated on a straight-line basis over the estimated useful life except for land which is not depreciated. The useful life is reviewed on each balance sheet date. The following useful lives are ap-plied:

Equipment, tools, and machinery 5 years

Liquid assets

Liquid assets consist of cash and cash equiv-alents and unappropriated holdings with banks and other credit institutions.

Receivables

Receivables have been recognised at the amount expected to be received.

Other assets, provisions and liabilities

Other assets, provisions and liabilities have been valued at their acquisition value unless otherwise indicated.

Cash flow statements

Cash flow statements have been prepared in ac-cordance with Chapter 7 of BFNAR 2012:1 (K3) using the indirect method.

Parent Company valuation principles – alter-native rules in legal entities

Participations in subsidiaries

Participations in subsidiaries are valued at acquisition value, possibly less impairment. Dividends from subsidiaries are reported as income.

Group contributions

All Group contributions paid or received are recognised as appropriations.

Estimations and assessments

When financial reports are drawn up, the Board of Directors and the CEO must make certain esti-mates, assessments and assumptions, according to the accounting and valuation principles applied, which impact on the reporting and valuation of as-sets, provisions, liabilities, income and expenses. The areas where such estimates and assessments may be of great importance to the Group, and which can thus affect the income statements and balance sheets in the future, are described below.

An assessment is carried out at each balance sheet date of whether there is any indication of a need for impairment of any of the finan-cial fixed assets. Impairment takes place if the decrease in value is considered to be perma-nent, and is tried individually.

Important assessments

The following are important assessments that have been made during implementation of the Group’s accounting principles, and which have the most significant effect on the finan-cial reports.

Reporting on ongoing service assignments

Ongoing service assignments are recognised as revenue as work is performed and materials are delivered or consumed.

Reporting of deferred tax receivables

The assessment of the extent to which de-ferred tax receivables may be reported is based on an assessment of the probability of the Group’s future taxable income against which deferred tax receivables can be utilised. Significant consideration is also required in the assessment of the effect of certain legal and financial limitations or uncertainties in dif-ferent jurisdictions.

Assessment of doubtful receivables

Accounts receivable are valued at the cash flow that is expected to be received by the Company. A detailed and objective review of all outstanding amounts on the balance sheet date is therefore carried out.


N OT E S O N I N D I V I D UA L I T E M S

NOTE 1PURCHASES AND SALES WITHIN THE GROUP

PARENT COMPANY

SEK thousands 2019 2018

Share of sales relating to group companies 0% 0%

Share of purchases relating to group companies

64% 75%

NOTE 2CAPITALISED DEVELOPMENT EXPENDITURE


SEK thousands 31/12/2019 31/12/2018 31/12/2019 31/12/2018

Accumulated cost

Opening balance 12,573 12,549 23,115 23,075

Purchases 2,440 24 - 40

Acquired companies 812 - - -

Currency translation difference -16 - - -

15,809 12,573 23,115 23,115

Opening balance -2,724 -209 -4,695 -401

Depreciation/amortisation for the year -2,803 -2,515 -4,623 -4,294

Acquired companies -200 - - -

Currency translation difference 5 - - -

Closing balance -5,722 -2,724 -9,318 -4,695

Net carrying amount 10,087 9,849 13,797 18,420

NOTE 3CAPITALISED DEVELOPMENT EXPENDITURE


SEK thousands 2019 2018 2019 2018

Expensed remuneration amounts to:

Grant Thornton Sweden AB

Audit assignment 483 442 322 422

Auditing activities other than the auditing assignment

12 16 11 16

Tax consulting - - - -

Other services 3 44 3 44

498 502 336 482

Other audit firms

Audit assignment 17 - - -

Auditing activities other than the audit engagement

35 - - -

Tax consulting - - - -

Other services - - - -

52 0 0 0

NOTE 4OPERATING LEASE AGREEMENTS

The Group’s leasing costs for the year amount to SEK 2,697 thousand (SEK 1,022 thousand) and relate to leases and the rental of equipment. The Parent Com-pany has no leasing contracts.

NOTE 5SALARIES AND REMUNERATIONS FOR EMPLOYEES


SEK thousands 31/12/2019 31/12/2018 31/12/2019 31/12/2018

Board and CEO

Salaries and remuneration 4,677 1,166 263 300

Social security costs 1,334 479 69 118

of which pension costs 78 59 - -

6,011 1,645 332 418

Other employees

Salaries and remuneration 17,203 9,763 - -

Social security costs 5,045 3,937 - -

of which pension costs 1,116 1,092 - -

22,248 13,700 - -

The amounts for remuneration to the Board and CEO include remuneration to the respective CEOs of all Group companies and the Group’s Board of Directors. The remuneration for Magnus Granqvist and Kenneth Häggmark is included here as they receive a salary but do not receive Board remuneration.

NOTE 6AVERAGE NUMBER OF EMPLOYEES

The average number of employees is based on hours of presence paid by the Company related to normal working hours.


31/12/2019 31/12/2018 31/12/2019 31/12/2018

Total 55 23 - -

of which women 13 4 - -

of which men 42 19 - -

Average number of employees by country

Sweden 34 19 - -



Finland 5 0 - -

of which women - - - -

of which men 5 - - -

The Philippines 16 4 - -




NOTE 7SALARIES FOR EMPLOYEES

2019 2018

WOMEN MEN WOMEN MEN

Parent Company

Board members and CEO

17% 83% 17% 83%

Senior management 20% 80% 0% 100%

Subsidiaries

Board members and CEOs

17% 83% 9% 91%

NOTE 8GOODWILL


SEK thousands 31/12/2019 31/12/2018 31/12/2019 31/12/2018

Accumulated cost

Opening balance 50,083 - - -

Purchases - 967 - -

Acquired companies 14,540 49,116 - -

Closing balance 64,623 50,083 0 0

Accumulated amortisation

Opening balance -2,207 - - -

Acquired companies - -120 - -

Depreciation/amortisation for the year -11,471 -2,087 - -

Closing balance -13,678 -2,207 0 0

Net carrying amount 50,945 47,876 0 0

NOTE 9EQUIPMENT, TOOLS, FIXTURES AND FITTINGS


SEK thousands 31/12/2019 31/12/2018 31/12/2019 31/12/2018

Accumulated cost

Opening balance 1,031 828 757 646

Purchases 1,029 172 494 111

Sales and disposals -305 - -169 -

Acquired companies - 31 - -


Closing balance 1,760 1,031 1,082 757

Accumulated amortisation

Opening balance -503 -216 -397 -175

Depreciation/amortisation for the year -418 -268 -290 -222

Sales and disposals 173 - 89 -

Acquired companies - -19 - -


Closing balance -747 -503 -598 -397

Net carrying amount 1,012 528 484 360

NOTE 10INTEREST INCOME AND SIMILAR PROFIT/LOSS ITEMS


SEK thousands 2019 2018 2019 2018

Exchange rate gains on receivables and liabilities

102 - - -

Other interest income - - - -

102 0 0 0

NOTE 11INTEREST EXPENSE AND SIMILAR PROFIT/LOSS ITEMS


SEK thousands 2019 2018 2019 2018

Exchange rate gains on receivables and liabilities

- -9 - -

Other interest income 27 104 22 94

27 95 22 94

NOTE 12TAXES

Income tax recognised in the income statement


SEK thousands 2019 2018 2019 2018

Current tax expense -53 -32 - -

Deferred tax income (+)/expense (-) -4,744 -263 -2,506 -

Tax expense/-income -4,797 -295 -2,506 0

Reconciliation of effective tax

Pre-tax profit -45,668 -24,825 -36,718 -25,278

Tax calculated according to the Swedish tax rate (21.4%)

9,773 5,462 7,858 5,561

Effect of foreign tax rates -68 -38 - -

Current tax expense attributable to prior periods

- -19 - -

Tax effect of non-deductible expenses -101 -98 -49 -21

Tax effect of non-taxable income 4 - - -

Tax effect of tax allocation reserve -1 -32 - -

Non-capitalised loss carry-forwards -14,405 -5,569 -10,314 -5,540

-4,797 -295 -2,506 0

Deferred tax assets and tax liabilities


SEK thousands 31/12/2019 31/12/2018 31/12/2019 31/12/2018

Loss carry-forward - 4,744 - 2,506

Deferred tax on appropriations -122 -122 - -

Deferred tax assets/liabilities, net -122 4,622 0 2,506


NOTE 14OTHER RECEIVABLES


SEK thousands 31/12/2019 31/12/2018 31/12/2019 31/12/2018

Receivable subscribed for unpaid capital - 6,209 - 6,209

VAT receivable 830 492 826 492

Tax receivables 4 107 - 1

Other receivables 642 218 8 150

1,476 7,026 834 6,852

NOTE 15PREPAID EXPENSES AND ACCRUED INCOME


SEK thousands 31/12/2019 31/12/2018 31/12/2019 31/12/2018

Accrued income 971 413 - 24

Prepaid rent 403 113 403 -

Prepaid insurance 3 - - -

Other prepaid expenses 412 251 377 171

1,789 777 780 195

NOTE 13PARTICIPATIONS IN GROUP COMPANIES

PARENT COMPANY

Company/Corp. ID no./Headquarters QUANTITY SHARE OF EQUITY 31/12/2019 31/12/2018

Virtual Brains, 559019-7298, Stockholm 500 100% 50 50

Vobling AB, 559019-6951, Stockholm 1,000 100% 50,005 50,005

Bublar Group Optioner AB, 559164-1757, Stockholm

500 100% 470 -

Sayduck OY 300,000 100% 14,772 -

65,297 50,055

Vobling AB owns 100% of the shares in Vobling Asia, Inc., with its headquarters in Manilla, the Philippines. The Company is consolidated as of 31/12/2019.

PARENT COMPANY

SEK thousands 31/12/2019 31/12/2018

Opening balance 50,055 50

Acquisition of Vobling AB 250 50,005

Establishment of Bublar Optioner Group AB 470 -

Acquisition of Sayduck OY 14,522 -

Closing balance 65,297 50,055

COMPANY EquityProfit/loss

for the year

Virtual Brains 115 16

Bublar Group Optioner AB 438 -32

Sayduck Oy 48 -187

Vobling AB* 2,126 661

* Refers to the Vobling Group, including the subsidiary Vobling Asia, Inc.

NOTE 16PLEDGED ASSETS AND CONTINGENT LIABILITIES


SEK thousands 31/12/2019 31/12/2018 31/12/2019 31/12/2018

Company mortgage - 3,000 - 3,000

Blocked funds 150 150 150 150

Contingent liabilities 11 - - -

NOTE 17SHARE CAPITAL

NUMBER OF SHARES SHARE CAPITAL (SEKK)

31/12/2019 31/12/2018 31/12/2019 31/12/2018

Number/value at the beginning of the year 40,051,036 25,265,445 1,144 722

New share issue 14,862,105 14,785,591 425 422

Bonus issue - - - -

Number/value at end of year 54,913,141 40,051,036 1,569 1,144

NOTE 18LIABILITIES TO CREDIT INSTITUTIONS

NUMBER OF SHARES SHARE CAPITAL (SEKK)

SEK thousands 31/12/2019 31/12/2018 31/12/2019 31/12/2018

Repayment within 1 year - 1,000 - 1,000

Repayment in 2–5 years 780 - - -

Repayment in more than 5 years 469 - - -

1,249 1,000 0 1,000

NOTE 19LIABILITIES TO CREDIT INSTITUTIONS


SEK thousands 31/12/2019 31/12/2018 31/12/2019 31/12/2018

Employee-related costs 2,376 1,716 - -

Other accumulated expenses 1,102 778 1,483 588

3,478 2,494 1,483 588

NOTE 20ADJUSTMENTS FOR NON-CASH ITEMS


SEK thousands 31/12/2019 31/12/2018 31/12/2019 31/12/2018

Depreciation of fixed assets 14,629 4,859 4,913 4,516

Other items 276 - - -

14,905 4,859 4,913 4,516


NOTE 21CHANGES IN THE COMPOSITION OF THE GROUP

On 3 July the Group acquired Sayduck, a leading operator in 3D Augmented Reality with a technical platform aimed at the global e-commerce market. The platform makes it possible for e-commerce companies to develop their digital product portfolio in 3D and allows customers to place virtual 3D models of the products in the real world with augmented reality technology. The purchase price was agreed at SEK 13.5 million and has been paid in the form of 3,064,424 newly issued shares in Bublar Group AB. In addition, a performance-based possible additional purchase price (to be paid in newly issued shares) corresponding to 3,064,424 shares has been agreed. Sayduck’s shareholders have entered into a 1-year lock-up agreement for the shares they have now received in the transaction. The non-cash issue was performed with the support of authorisation from the Annual General Meeting on 11 April 2019.

SEK thousands 31/12/2019

Acquisition cost for the shares:

Amount settled by non-cash issue 13,438

Amount to be settled with cash and cash equivalents

-

Acquisition costs 1,074

Total 14,512

Reported amounts of identifiable net assets:

Intangible assets 1,260

Property, plant and equipment -

Other non-current assets -

Liquid assets 373

Other current assets 579

Total assets 2,212

Deferred tax liabilities -

Other liabilities 2,240

Total liabilities 2,240

Total identifiable net assets -28

Goodwill at acquisition 14,540

Consideration via non-cash issue -14,512

Acquired cash and cash equivalents 373

Net cash upon acquisition -14,139

NOTE 22DEFINITION OF KEY PERFORMANCE INDICATORS

Equity ratio – Adjusted equity as a percentage of total assetsReturn on equity – Profit/loss after financial items as a percentage of average adjusted equityReturn on total capital – Operating profit/loss plus financial income, as a percentage of average balance sheet totalQuick ratio – Current assets excluding inventories as a percentage of current liabilities

NOTE 24 APPROPRIATION OF EARNINGS

SEK thousands 2019

The following accumulated loss shall be treated by the Annual General Meeting (SEK):

Premium reserves 186,691,217

Accumulated deficit from the previous year -37,857,434

Profit/loss for the year -39,224,422

109,609,362

The Board of Directors proposes that the profit/loss be distributed so that they are transferred to the following accounting period 109,609,362

109,609,362

NOTE 23CONTINGENT LIABILITIES

According to the Board’s assessment, the Group and the Parent Company have no contin-gent liabilities.

Stockholm, March 12 2020

Staffan Eklöw Magnus Granqvist Patrik Hansson Kenneth Häggmark Per Anders Wärn Chairman

Maria A. Grimaldi CEO

My auditor’s report was submitted on March 12 2020.

Carl Niring Authorised Public Accountant


• Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of the going concern basis of account-ing in preparing the annual accounts and consolidated accounts. I also draw a conclusion, based on the audit evidence obtained, as to whether any material uncertainty exists related to events or conditions that may cast significant doubt on the company’s and the group’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the annual accounts and consolidated accounts or, if such disclosures are inadequate, to modify my opinion about the annual accounts and consolidated accounts. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause a company and a group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the annual accounts and consolidated accounts, including the disclo-sures, and whether the annual accounts and consolidated accounts represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated accounts. I am responsible for the direction, supervision and performance of the group audit. I remain solely responsible for my opinions.

I must inform the Board of Directors of, among other matters, the planned scope and timing of the audit. I must also inform of significant audit findings during my audit, including any significant deficiencies in internal control that I identified.

Report on other legal and regulatory requirements

Opinions

In addition to my audit of the annual accounts and consolidated ac-counts, I have also audited the administration of the Board of Directors and the Managing Director of Bublar Group AB (Publ) for the year 2019 and the proposed appropriations of the company’s profit or loss.

I recommend to the general meeting of shareholders that the profit be appropriated in accordance with the proposal in the statutory admin-istration report and that the members of the Board of Directors and the Managing Director be discharged from liability for the financial year.

Basis for Opinions

I conducted the audit in accordance with generally accepted auditing standards in Sweden. My responsibilities under those standards are further described in the “Auditor’s Responsibilities” section. I am inde-pendent of the parent company and the group in accordance with pro-fessional ethics for accountants in Sweden and have otherwise fulfilled my ethical responsibilities in accordance with these requirements.

I believe that the audit evidence I have obtained is sufficient and appro-priate to provide a basis for my opinions.

Responsibilities of the Board of Directors and the Managing Director

The Board of Directors is responsible for the proposal for appropria-tions of the company’s profit or loss. At the proposal of a dividend, this includes an assessment of whether the dividend is justifiable consid-ering the requirements which the company’s and the group’s type of operations, size and risks place on the size of the parent company’s and the group’s equity, consolidation requirements, liquidity and position in general.

The Board of Directors is responsible for the company’s organization and the administration of the company’s affairs. This includes among other things continuous assessment of the company’s and the group’s financial situation and ensuring that the company’s organization is designed so that the accounting, management of assets and the com-pany’s financial affairs otherwise are controlled in a reassuring man-ner. The Managing Director shall manage the ongoing administration according to the Board of Directors’ guidelines and instructions and among other matters take measures that are necessary to fulfill the company’s accounting in accordance with law and handle the manage-ment of assets in a reassuring manner.

Auditor’s responsibility

My objective concerning the audit of the administration, and thereby my opinion about discharge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any member of the Board of Directors or the Managing Director in any material respect:

• has undertaken any action or been guilty of any omission which can give rise to liability to the company, or

• in any other way has acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association.

My objective concerning the audit of the proposed appropriations of the company’s profit or loss, and thereby my opinion about this, is to assess with reasonable degree of assurance whether the proposal is in accordance with the Companies Act.

Reasonable assurance is a high level of assurance, but is not a guaran-tee that an audit conducted in accordance with generally accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the company, or that the proposed ap-propriations of the company’s profit or loss are not in accordance with the Companies Act.

As part of an audit in accordance with generally accepted auditing standards in Sweden, I exercise professional judgment and maintain professional scepticism throughout the audit. The examination of the administration and the proposed appropriations of the company’s profit or loss is based primarily on the audit of the accounts. Additional audit procedures performed are based on my professional judgment with starting point in risk and materiality. This means that I focus the examination on such actions, areas and relationships that are material for the operations and where deviations and violations would have par-ticular importance for the company’s situation. I examine and test de-cisions undertaken, support for decisions, actions taken and other cir-cumstances that are relevant to my opinion concerning discharge from liability. As a basis for my opinion on the Board of Directors’ proposed appropriations of the company’s profit or loss I examined whether the proposal is in accordance with the Companies Act.

Stockholm March 12 2020

Carl Niring

Authorized Public Accountant

AU D I TO R ’ S R E P O R TTo the Annual General Meeting of Bublar Group AB (Publ), Corp. ID no. 559019-7462 Translated copy.

Report on the annual accounts and consolidated accounts

Opinions

I have audited the annual accounts and consolidated accounts of Bublar Group AB (Publ) for the year 2019. The annual accounts and consolidated accounts of the company are included on pages 47-65 in this document.

In my opinion, the annual accounts and consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of parent company and the group as of December 31 2019 and their financial performance for the year then ended in accordance with the Annual Accounts Act. The statutory administration report is consistent with the other parts of the annual accounts and consolidated accounts.

I therefore recommend that the general meeting of shareholders adopts the income statement and balance sheet for the parent compa-ny and the group.

Basis for Opinions

I conducted my audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. My responsibilities under those standards are further described in the “Auditor’s Responsibilities” section. I am independent of the parent company and the group in accordance with professional ethics for ac-countants in Sweden and have otherwise fulfilled my ethical responsi-bilities in accordance with these requirements.

I believe that the audit evidence I have obtained is sufficient and appro-priate to provide a basis for my opinions.

Significant uncertainty factor relating to the assumption of continued operation

Without impacting on my opinions, I would like to draw the attention to the boards wording in the administration report under the heading “Capital Needs”, which states that the Company is dependent on fur-ther capital contribution during 2020 to safeguard the continuation as a going concern.

Information other than the annual accounts and the consolidated accounts

This document also contains information other than the annual report and the consolidated accounts and can be found on pages 1-45 and 68-70. It is the Board of Directors and the Managing Director who are responsible for this other information.

In connection with my audit of the annual accounts and consolidat-ed accounts, it is my responsibility to read the information identified above and consider whether the information is substantially incon-sistent with the annual report and the consolidated accounts. In this review, I also take into account the knowledge that I have otherwise obtained during the audit and assess whether the information in the rest appears to contain material errors.

If based on the work that has been done on this information, I conclude that the other information contains a material inaccuracy, I am obliged to report it. I have nothing to report in that regard.

Responsibilities of the Board of Directors and the Managing Director

The Board of Directors and the Managing Director are responsible for the preparation of the annual accounts and consolidated accounts and that they give a fair presentation in accordance with the Annual Ac-counts Act. The board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of annual accounts and consolidated accounts that are free from material misstatement, whether due to fraud or error.

In preparing the annual accounts and consolidated accounts, the Board of Directors and the Managing Director are responsible for the assessment of the company’s and the group’s ability to continue as a going concern. They disclose, as applicable, matters related to going concern and using the going concern basis of accounting. The going concern basis of accounting is however not applied if the Board of Di-rectors and the Managing Director intends to liquidate the company, to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibility

My objectives are to obtain reasonable assurance about whether the annual accounts and consolidated accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Mis-statements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual accounts and consolidated accounts.

As part of an audit in accordance with ISAs, I exercise professional judg-ment and maintain professional scepticism throughout the audit. I also:

• Identify and assess the risks of material misstatement of the annual accounts and consolidated accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinions. The risk of not detecting a material misstate-ment resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of the company’s internal control relevant to my audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opin-ion on the effectiveness of the company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors and the Managing Director.


B OA R D O F D I R E C TO R S S E N I O R E X E C U T I V E S A N D AU D I TO R S

Bublar’s Board of Directors, including the Chairman, currently consists of five (5) members and no deputy Board members.

Staffan EklöwBorn in 1957 Chairman of the Board since 2017

Staffan holds a Master’s Degree in Law and Business Administration from Stockholm University. Staffan has almost 30 years of experience as a business lawyer in legal firms and corporations. From 1994 to 2000 he was the general counsel at TV4. Staffan has experience of Board work and held the position of Managing Partner at law firm Lindahl for several years.Other current Board assignments: Lennart Nilsson Photography AB, Etikinvest AB (publ.), Onside TV-Production AB, HDR Sweden AB, Medlingscentrum Sverige AB, Etikinvest AB (publ.), Onside Arena Solutions AB, K41 Holding AB.

Number of shares in Bublar: 100,000 shares.

Magnus GranqvistBorn in 1968 Board member since 2015

Magnus holds a Master’s Degree in Economics from Stockholm University. Co-founder of Bublar and CEO from 2015 to May 2019. Magnus has 20 years’ experience in sales and business development from the media, internet and entertainment industries. His previous positions include Sales Manager for Sandrew/Warner Brothers’ cinema launches in Sweden and CEO of the film company Noble Entertainment. He has also worked at MTG with live TV games, and Cell Network, where he was the CEO and founder of the subsidiaries Cell Interactive TV and the Nordic region’s first interactive TV channel, eTV. Other current Board assignments: MAGRAQ Invest AB, Vobling AB, Dream Stage VR AB. Number of shares in Bublar: 2,516,310 shares via MAGRAQ Invest AB.

Patrik HanssonBorn in 1971 Board member since 2019

Patrik holds a bachelor’s degree in Economics from Stockholm University. Patrik founded Vobling AB and became its Business Developer when it was acquired by Bublar. In addition to his dedication to Bublar Group, Patrik is an active investor in a number of smaller growth companies. He has previously worked in the healthcare and IT industries, in both public and private entities, and has held a number of CEO positions and managerial roles over the last 25 years.Other current Board assignments: IT-Maps Sweden AB, Mimerse AB, Vobling AB, Deepio AB, Varde Holding AB, BIB Fashion AB, Liquidism AB, Hypotax Holding AB.

Number of shares in Bublar: 2,500,000 shares via Varde Holding AB.

Maria A. GrimaldiBorn in 1968 Chief Executive Officer since 2019

Maria holds a diploma in Market Economics, and trained as a Brand Strategist at Berghs School of Communication. She has been the Chief Executive Officer of Bublar Group since 13 May 2019. Maria has extensive experience from leading positions in the gaming industry, consulting roles and investments in growth companies. She is the former head of ANGI – the Association for the Nordic Game Industry. Maria is currently the Chairman of the Board of gaming studio Fall Damage, a Board member for the E-sports platform Esportal AB and M.O.B.A. Network, and is a member of the jury for the world’s largest entrepreneurial competition, EOY – Entrepreneur of the Year. Other current Board assignments: Gegant AB, MW Newland AB, Shortcut Media AB, Insert Coin AB, Fileon AB, ESPORTAL AB, We’re All Under The Same Sun AB, Fall Damage Studio AB, M.O.B.A. Network AB (publ).

Number of shares in Bublar: 30,769 shares and 450,000 share warrants.

Anders RibbingBorn in 1978 Managing Director of Vobling since 2018

Anders has a broad experience in XR technologies (AR/VR/MR/3D), TV, digital and social media, business development, gaming, digital transformation and creating new business concepts. Several years of experience at TV4. Founder of the VR studio Rayvr, purchased by Vobling in 2018.

Number of shares in Bublar: 806,289 shares (Ribbing Invest AB) and 150,000 warrants.

Magnus GranqvistBorn in 1968 Director since 2019

Magnus holds a Master’s Degree in Econom-ics from Stockholm University. Co-founder of Bublar and CEO from 2015 to May 2019. Magnus has 20 years’ experience in sales and business development from the media, internet and entertainment industries. His previous positions include Sales Manager for Sandrew/Warner Brothers’ cinema launches in Sweden and CEO of the film company Noble Entertainment. He has also worked at MTG with live TV games, and Cell Network, where he was the CEO and founder of the subsidiaries Cell Interactive TV and the Nordic region’s first interactive TV channel, eTV.Other current Board assignments: MAGRAQ Invest AB, Vobling AB, Dream Stage VR AB.

Number of shares in Bublar: 2,516,310 shares via MAGRAQ Invest AB.

Wictor HattenbachBorn in 1984 Game Studio Director since 2017

Employed by the Company since 2017. Solid background in using new technolo-gies and visionary leadership to produce groundbreaking games for console, online, F2P, MMO and mobile platforms.Wictor has experience in leading global development teams throughout the gaming development life cycle. He previ-ously worked on game design for studios including Ubisoft, Bigpoint, Crowdpark, Win, Beatguide, and Magix. Wictor spe-cialises in game design, UX design and creative project management.

Number of shares in Bublar: 0 shares and 90,000 share warrants.

Alexander HamiltonBorn in 1991 Managing Director of Vobling Asia, Manilla, since 2018

Alexander Hamilton is a developer, designer and entrepreneur. Since 2015, he has built up Vobling to become Scan-dinavia’s leading company in Augmented Reality (AR) and Virtual Reality (VR). He leads the growth of Vobling in Asia from the Company’s office in Manila.

Number of shares in Bublar: 964,320 shares via Hypotax Holding AB.

Kenneth HäggmarkBorn in 1978 CTO since January 2019

Kenneth has an MSc in Engineering from The Institute of Technology at Linköping University and is one of Bublar’s co-founders. Previously, Kenneth developed real-time simulators for the Swedish defence industry, and interactive software for the ABBA Museum, as well as managed businesses in Virtual Reality (VR), Augmented Reality (AR) and Natural User Interfaces (NUI).Other current Board assignments: Audi-onord AB, DreamStage AB, CrossNature AB, Vobling AB, DreamStage VR AB, Mad Roses AB.

Number of shares in Bublar: 2,516,310 shares via Kvantskum AB.

Anders LindellBorn in 1962 Chief Financial Officer since 2017

Anders holds a Master’s Degree from the Stockholm School of Economics and MBA studies at the University of Massachusetts at Amherst, USA. He has experience in finance and accounting from positions in smaller companies, as well as financial market experience through previous positions in UBS (Frankfurt and London), Handelsbanken (Stockholm), Strenuus Capital (London). Other current Board assignments: Strenu-us International AB, Bublar Optioner AB, Strenuus Capital Ltd.

Number of shares in Bublar: 214,000 shares and 150,000 share warrants via Strenuus International AB.

Niklas SlotteBorn in 1979, Managing Director of Sayduck since 2019

Niklas holds an MBA from The Hanken School of Economics in Helsinki, Finland. Niklas is a co-founder of Sayduck that is part of Bublar Group and has over 15 years of previous experience as co-founder, CEO and Business Developer of Steam Commu-nications Oy and WhyPrint Oy.


Auditor Carl NiringAuditor in charge Grant Thornton

Kenneth HäggmarkBorn in 1978 Board member since 2015

Kenneth has an MSc in Engineering from The Institute of Technology at Linköping University and is one of Bublar’s co-founders. Previously, Kenneth developed real-time simulators for the Swedish defence industry, and interactive software for the ABBA Museum, as well as managed businesses in Virtual Reality (VR), Augmented Reality (AR) and Natural User Interfaces (NUI).Other current Board assignments: Audi-onord AB, DreamStage AB, CrossNature AB, Vobling AB, DreamStage VR AB, Mad Roses AB.

Number of shares in Bublar: 2,516,310 shares via Kvantskum AB.

Per Anders WärnBorn in 1961 Board member since 2019

Per Anders holds an Executive MBAfrom the Stockholm School of Economics. Per Anders played an active role in the man-agement of Gartner, Connecticut, USA, the world’s leading company in Research & Advi-sory, where he was responsible for Gartner’s global consulting business between 2008 and 2017. Per Anders is currently CEO of STOAF (Stockholm Business Angels) III SciTech and STOAF III Venture Partners.

Other current Board assignments: Limina AB



SHAREHOLDER INFORMATION

FINANCIAL CALENDAR 2020

Publication Annual Report 2019 March 12 Annual General Meeting April 2 Interim report Q1 Jan– March May 14 Interim report Q2 Jan–June August 21 Interim report Q3 Jan– Sept November 10

All of Bublar’s reports and Annual reports are available at www.bublar.com

Shareholder information is available on Bublar’s website. Shareholders in Bublar can find financial information related to Bublar Group and other rel-evant information under the Investor Relations tab.

Annual General Meeting 2020

Time: 6 pm, registration opens at 5:15 pm Location: GT 30, Grev Turegatan 30, Stockholm in the Bond auditorium.

You can register on Bublar’s website www.bublar.com, Bublar Group AB (publ), Kungstensgatan 18, SE-113 57 Stockholm, Sweden, by phone; 0046 (0)8-559 251 20 or by email; [email protected].

Registration and notification

Shareholders who wish to attend the Annual General Meeting must be on the transcript of the shareholders’ register produced by Euroclear Sweden AB as of Friday March 27 2020, and must notify the Compa-ny of their intention to participate in the Annual General Meeting by Friday March 27 2020. When notifying, please include your name, personal ID number or corporate ID number, address and telephone number, as well as the number of any assistants. Registration for the AGM opens at 5:15 pm.

Notice of the Annual General Meeting is available on Bublar’s website, www.bublar.com, and was published in Post- och Inrikes Tidningar on March 5 2020 and announced in Dagens Industri on the same day. Bublar Group AB (publ), Corporate ID number 559019-7462, with its headquar-ters in Stockholm. Find Bublar Group’s address on www.bublar.com.

Definitions

eXtended Reality (XR)

XR is the collective name for technology that in some way amplifies reality with the help of hardware and/or software, and creates a combined or completely fictional reality ex-perience digitally. The term XR includes AR, MR and VR technology.

Augmented Reality (AR)

AR or augmented reality means that the user views a physical environment with enhanced elements such as text, animations or charac-ters. The most popular way of expressing AR is through the camera on a mobile phone or tablet, where the software applies a digital layer to the real-world environment. Smart glasses have also started being used, such as Microsoft HoloLens 2. Areas of application for the technology include industry, health-care and the entertainment industry.

Virtual Reality (VR)

Unlike AR, VR or virtual reality is an experi-ence that is completely digital and fictional. The technology replicates an environment that can be real or fictional, and simulates the user’s physical presence. Areas of application for the technology include industry and the entertainment industry.


Bublar Group AB (publ)

Kungstensgatan 18 SE-113 57 Stockholm Sweden

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