ANNUAL REPORT 2018

TABLE OF CONTENT

A MESSAGE FROM THE CEO 4WEC360° INSPIRING GREAT DECISIONS 5CORE VALUES 6OFFERS & PRODUCTS 7VIRTUAL REALITY & AUGMENTED REALITY 8INSPIRING WEB EXPERIENCES 9PARTNERSHIP WITH SAMSUNG 10 ECONOMIC OVERVIEW 2018 11 INTERNATIONALISATION 13 MARKET DEVELOPMENT IN 2018 14 TECHNOLOGICAL LEAP 15OFFICES IN FOUR COUNTRIES 16 ORGANISATION & STAFF 17 BRAND & PR 18VISIBILITY & EVENTS 19 A SELECTION OF CUSTOMERS 20 MEMBERS OF THE BOARD 2018 21 CUSTOMER CASE: BROADWAY 1245 22CUSTOMER CASE: THE BICYCLE FACTORY 23FINANCIAL REPORT 24AUDITOR'S REPORT 39

A MESSAGEFROM THECEO

2018 has been an incredibly exciting year for wec360°, and perhaps the most eventful year in the company's history. Overall, the greatest develop-ment for the company has been the initi-ated and very successful journey toward internationalisation.

During the year, we increased our market share in Sweden visualising more than 36% of flats which started their project phases throughout the country. Consequently we were the largest player within the 3D visuali-sation field in 2018. However, our ambitions for the company extend far beyond our Swedish borders, and with the successes in Sweden as a springboard, we believe strongly in an international market for our company and our product.

In 2018 we began the exciting journey of establishing a series of new inter-national markets. During the spring, we opened offices in Oslo and Warsaw. The Oslo office is the point of departure for our efforts on the entire Nordic market, while Warsaw is our new base for the produc-tion of 3D graphics. In a short period of time, the Norwegian market has proven to respond very well to our product, with a large number of projects already under production. We have also been successful in the other Scandinavian countries, with projects both in Denmark and in Finland.

NEW YORKDuring the autumn, work also began on getting established in New York, and during the spring of 2019, our American company was registered at that location. Moreover, our business activity is already under way there, and our first project for American

customers was delivered this spring.

We managed to internationalise in completely new markets using only organic funds, a fact I feel strongly demonstrates our strength as a team and flexibility as a company. Furthermore, in a short period of time, we have become successful in the form of gaining customers on the new markets, which in turn demonstrates the strength of our product.

DIMINISHING SWEDISH BUILDING TRENDSThe previously strong building trend in Sweden has been declining over the past year, and we have of course been affected by the downturn - even as our market share has increased. Our turnover on the Swedish market is somewhat lower than the year before. Going international has been a natural step in accordance with the business plan, but also a strategic move in order for us to diversify and to create more platforms on which to stand. In hindsight, it seems like a good result.

NEW TECHNICAL PLATFORM The other major event for us in 2018 has been the transformation of our production facility, where we have gone from "offline rendering" to "real time rendering". In practice, this means that we have applied Hollywood's and the gaming industry's

methods of processing 3D graphics to our working procedure, which in turn speeds up the working processes considerably, all while increasing the graphical output. The result is a much more rapid production with the means of substantially increased levels of output. The technical shift is in practice a revolution for us, as we see opportuni-ties to be able to change and supplement entirely new business models based on it.

In closing, I would like to mention the devel-opment within webGL and the technology for interactive 3D graphics online, in which we invested heavily in 2018. We expect that this will permeate much of our tech-nical output in 2019, and we look forward to yet another exciting year!

With the successes in Sweden as a springboard, we believe strongly in an international market.

Much more rapid production with the means of consider-ably increased levels of output

T O M A S J E N N E B O R GCEO

2018 IN NUMBERS:ESTABLISHMENT IN 5 COUNTRIES - 15 000+ FLATS VISUALISED - 36% OF THE RESIDENTIAL PROPERTY MARKET IN SWEDEN

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wec360° primarily helps companies in the construction and property industry, as well as various operations within the public sector to make their construc-tion projects digitally available. At pres-ent, the company is Scandinavia's largest supplier of systems and 3D solutions for building projects, inter alia with the aid of VR (Virtual Reality) and AR (Augmented Reality). The company's services and products are primarily used in order, at an early stage, to inspire and inform potential residential property buyers, citizens and

companies about future building projects and their opportunities.

wec360°'s customers over the year have primarily been nationally and inter-nationally active construction companies such as Skanska, Peab, HSB and Riksbyg-gen, as well as public housing companies, regional construction companies and com-panies working with premises and facilities, for example, Friends Arena. In 2018, an investment was made in 3D solutions for urban development and support for citizen dialogue, and the company during the year

has received an array within the public sec-tor, as well as municipal councils.

wec360° has its main office in Örebro and its marketing and sales offices in Sol-na, Gothenburg and Malmö. In 2018, the company also opened offices in Oslo (sales) and Warsaw (production), and furthermore began establishment with projects in Den-mark, Finland and the United States.

Since 2016, wec360° has had a collab-orative partnership with Samsung.

WEC360° INSPIRING GREAT DECISIONS"We help your customers make safe and well-based decision regarding the future residence, property or project. This leads to more rapid decisions and better long-term relations with your customers."

CORE VALUESwec360° holds that values and culture are important cornerstones in building a sustainable company. Consequently, in 2018, work on implementing and living according to the company's key values have continued.

PROFESSIONALFor us, clarity and transparency are consistent throughout. We are always careful, deliver in time and with a high level of quality. We take our assignment very seriously, and we work according to structured working procedures, and with clear and unambiguous communication.

ENGAGEDWe are motivated by our passion for the assignment and we go all-in into the tasks. We do our very best always to be relevant, and we are passionate about having both our process and delivery meeting the highest level of quality. We are here for our customers, and in relation with them, we are nearby and we take responsibility.

Our employees are allowed to take part in the company's development, and the company is characterised by a high level of transparency.

CLOSEWe serve as an extension to your business operation. We meet and work with you in your environments. We are never far away, and we adapt ourselves to the greatest extent possible to our customer's platforms and needs.

We are staffed by human beings, not robots. Corporate culture is important to us, and we actively work to create a good work environment and cohesive teams.

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STILL RENDERS

AUGMENTED REALITY

VIRTUAL REALITY

APARTMENT FINDER

VIDEO & FILM

ROOM CONFIGURATOR

ONLINE WEBGL

DATA & INFORMATION

MATERIAL & DRAWINGS

SUN STUDIES

A large part of wec360°'s success in 2018 can be attributed to its own system plat-form for visualisation. This constitutes the

basis for the company's ecosystem of products and services. The construction project's basic infor-mation and data are loaded into the platform, from which a long array of various outputs can be made in the form of specific visualisation solutions - linked

together with relevant data (accessibility, measures, prices etc).

The range of solutions cover all need for commu-nication in existing channels (such as the web, social media, home stores, city planning offices, exposi-tions, local periodicals etc), which the company's customers conceivably have.

CompatibilityAs accessibility is a fundamental concept for wec360°'s customers, it has also been made into a common thread in the company's own offer. To put it simply, the aim is for "all products to be available to everyone, on all units".

OFFERS & PRODUCTSwec360° is a comprehensive supplier offering a system platform and visualisation services throug-hout the entire building process. The overall ambition for wec360° is to serve as a support to construction companies and municipal councils in all stages of the building- and sales process.

PackagingBy packaging the techniques and offering a whole solution, wec360° generates surplus value for its customers. There is a common thread through the material, and this entails major cost savings.

A majority of wec360°'s custom-ers order the company's system as a whole and take advantage of a wide range of products in all projects.

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VIRTUAL REALITY & AUGMENTED REALITYVirtual Reality and Augmented Reality are some of the most intriguing technical revolutions in recent years. wec360° has developed applications that maximise its use for the construction industry, and over the year it has made VR and AR into central aspects of the offer.

The common denominator for AR and VR is the combination between advanced technology and accessibility. With her/his existing mobile telephone or

tablet computer, the user can take part in a fully interactive and realistic depiction of the future.

Using Virtual Reality we allow the user to step into the future apartment or house. With advanced solutions based inter alia on HTC's Vive hardware, the user can freely wander around, change options in the kitchen in real time and expe-rience the authentic future view from the balcony. wec360°'s more flexible mobile telephone-based solution for web VR, on the other hand, allows users to research the apartments with their own mobile telephones as hardware from home.

With wec360°'s Augmented Reality transforms an ordinary floor plan into a complete 3D model, directly on the telephone or tablet computer. This allows housing stakeholders and city denizens to sit at home at their breakfast tables and together with their families gain an unsurpassed overview of the future city neighbourhood or quarter.

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ONLINE-SYSTEMVirtual Reality och Augmented Reality är några av de mest omvälvande teknikrevolutionerna de senaste åren. wec360° har utvecklat tillämpningar som maximerar nyttan för byggbranschen, och har under året gjort VR och AR till centrala delar i erbjudandet.

INSPIRING DECISION MAKINGONLINEOne of the fundamental elements in wec360°'s business concept is to add value to future 3D models through the application of a series of different digital techniques to the models. These are then made available to the customer and to the end user through online-based distribution.

The purpose of wec360°'s internet-based system is to create the best conceivable experience and understanding of a construction project for the end user. By bringing together appealing 3D graphics with advanced systems for the processing of data, wec360° can present the information in a manner that is easy to absorb and understand, and which at the same time is inspiring.

wec360°s interactive Apartment Finder is one such example in which the end customer gets a very easily accessible overview of the future property and all of its apartments. He/she can quickly gain a good understanding of all the residence's conditions and possibilities, and then to "go into" the apartment using VR. The interactive Sun Study shows how the sun shines on each balcony during different times of the day, and the authentic view can be experienced from the future balcony.

The interactive Kitchen Configurator is another example of a powerful tool that allows the user to see, to interact and to be inspired by his future residence. The configurator provides a means freely to combine the available options for the future kitchen, and in real time to watch as the user-unique kitchen takes shape.

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Since 2016, wec360° has been an offi-cial cooperative partner with Samsung. The cooperation revolves around 3D tech-nology and Virtual Reality with the purpose of increasing security for the home buyer when he/she is to make the most important purchase of his/her life. The VR content that wec360° developed for Samsung Gear VR entails inter alia that home buyers can step into their prospec-tive apartments before they are built, and thus gain a better and more realistic understanding before making their decisions.

"The cooperation with Samsung makes it possible for us to develop technology in close cooperation with one of the world's most innovative companies. For a business like ours, this is a great advantage in a fast-paced and very competitive world of technology", says Mattias von Corswant, one of wec360°'s founders.

The partnership between wec360° and Samsung elucidates the benefit to the customer offered by Samsung's hardware when it is loaded with the interactive content that wec360° provides. ”

PARTNERSHIP WITH

Meaningful innovations are about simplifying and improving people's lives. I think that the cooperation with wec360° is a good example of where we together facilitate residential purchases, both for the sellers and the buyers. Samsung invests heavily in Virtual Reality, and if you ask me, we have only seen the beginning of the opportunities that the technology will present us going forward.

- Fredrik PantzarLarge Account Sales Manager

Samsung

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In 2018, wec360° has accomplished a remarkable turnaround and replaced

negative earnings figures from the previous period with a positive result in this period. This is in spite of a diminished domestic market and costly investments in establishment in new countries and on new markets in Sweden. The organisation has been

made more efficient through cut-backs on overhead services. Along with an increased market share on a tough domestic market, the positive results indicate that the measures and investments made have paid off, and that the company is run in a sound and responsible manner.

Turnover for the period is somewhat less than for the previous year. The

diminished building trend in Sweden, in parallel with the company's focus on establishment investments on new geographic markets are some of the reasons. Through stronger revenue streams from new geographic markets and business areas, this will be counteracted in the future.

Market shareThe company's market share as a player within visualisation vis-à-vis the residential builders has increased in 2018 as compared with the previous year from approximately 28% to 36%. This is calculated with respect to the number of apartments having been started in Sweden during the year.

ECONOMIC OVERVIEW 20182018 has primarily dealt with investment in internationalisation, technical development and efficiency measures within the company's own organisation. In spite of major investment and a tough market, the company turned earnings figures around from negative to positive during the period.

36% market share

Market shareIn 2018, wec360° created 3D visualisations for a total of approximately 15,000 apartments. This corresponds to approximately 36% of the total 42,250 apartments that according to Statistics Sweden were begun in Sweden during the year. In 2017, the corresponding figure was 28%.

Multi-year Review Turnover and Profitswec360°'s earnings figures improved as compared with the previous year and yielded a positive result. At the same time, turnover during the period decreased.

Number of employeesThe company's resources have been reallocated during the year. The Swedish sales force has been reduced, as have internal overhead services. The investments in internationalisation, technology and 3D production at the same time has resulted in the company having hired experts within these fields.

The average number of employees went from 28 for the previous year to 24 in 2018.

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During the spring of 2018, wec360° opened offices in Oslo and Warsaw. The latter is purely a production office, while the Oslo office constitutes the point of departure for broad sales launches on the Norwegian market. The office represents local subsidiaries to the wec360° parent company.

Our Norwegian subsidiary, during its short time has produced a good level of sales and demonstrates a very strong mar-ket for wec360°.

During the year, sales have also begun in Denmark and Finland, with the majority of visualisation projects already having been delivered.

COMPANY IN NEW YORKDuring the autumn 2018, wec360° began an establishment in New York, USA, and in March of 2019, wec360°'s American com-pany was registered. The first visualisation projects in New York were delivered in the spring of 2019.

The company believes highly in the interna-tional markets, where one can see stronger building trends than in Sweden, as well as great interest for wec360°' products.

Thus, 2019 will continue to be charac-terised by continued international invest-ments.

A YEAR CHARACTERISED BY INTERNATIONALISATIONThe prominent trend for wec360° in 2018 was establishment on new geographic markets. During the course of the year, the company has opened offices in Warsaw and Oslo, as well as having begun visualisation projects in Finland, Denmark and the United States.

WEC360° AB (HQ SWEDEN)

WEC360° NORWAY AS

WEC360° POLAND SP. Z.O.O

WEC360° USA INC. (2019)

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MARKET DEVELOPMENT IN 2018The company's dominating position for systems and products within 3D visualisation in Sweden was entrenched in 2018, and market share continued to increase on the domestic market. In addition, the company's internationalisation efforts have borne fruit with projects in Norway, Finland, Denmark and the United States during the year.

The company's invest-ments on new interna-tional markets, as well as

in new fields of business on the domestic market, have proven to be effective in counteracting the potential effects of falling construction trends in Sweden. During the year, wec360° has set off on establishing itself on four new sales markets: Norway, Finland, Denmark and the United States. The response on each of those markets has been rapid and very positive with the majority of visualisation projects coming from new customers on each market.

In particular, the Norwegian and American markets have responded very well. Thanks to a consistently strong position on the domestic market and a series of new geographical markets, the company has generated the diver-sification needed to weather the

fluctuations in construction trends.Over the year, two more diversi-

fied market investments in new fields of business have been intensified: commercial premises and facilities, and the public sector. For the latter field, wec360° provides visualisation solutions in supporting an effective dialogue with citizens. The invest-ment was initiated in the autumn, and the reception was good with most municipal councils and urban development projects as customers.

The investment in commercial premises and facilities has paid off as well, and coincides strategically well with the forecasted strong trends for the segment within the building sector.

Furthermore, the company conti-nues to aim to gain long-term and framework contracts with its custo-mers, and in 2018, half of the compa-ny's revenues have come from new and existing contract customers.

On the 24th of April, 2018, wec360° opened the doors to its new 3D studio located in Warsaw. The

launch of the studio marks a new chapter in wec360°'s own technical development, and this entails a major and important technical transformation, from offline-rendered 3D to real-time rendered 3D.

In practice, the new technology involves

applying the way that the gaming industry and Hollywood work with 3D graphics and get around the long and costly graphics-ren-dering times. This in turn means that there is an enormous amount of efficiency for the entire production flow for wec360°. The company believes that the shift in technology will soon form the basis of an entirely new business model where many lead times and

other limitations become a faint memory.

COLLABORATION WITH EPIC GAMESwec360° bases the new technology model on Epic Games Unreal Engine, and the launch of the Warsaw studio coincided with a major event arranged by wec360° in col-laboration with Epic Games: VR Masterclass of 2018.

TECHNOLOGICAL LEAPTOWARD REAL-TIME RENDERINGIn 2018, wec360° made its hitherto largest investment in technical development in order to maintain its technological advantage within its niche. The transition to real-time rendering can be seen as one of the company's largest technological milestones.

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OSLO

GOTHENBURG

ÖREBRO

STOCKHOLM

MALMÖ

WARSAW

NEW YORK (2019)

A first step in the internationalisation for wec360° was the establishment of offices in Warsaw and Oslo.The Oslo office serves solely as a marketing office, while the Warsaw office has formed the company's production unit since April.

The main office is located in Örebro, while the offices in Malmö, Gothenburg and Stockholm serve as points of departure for the company's sales force.

Establishment in New York began in the autumn of 2018, and an American subsidiary was registered in March of 2019.

OFFICES IN FOUR COUNTRIES

wec360° has taken over Bio Rio's classic cinema in Örebro and transformed it into its main office.

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The company's resources have been allocated to the internationalisation investment during the year. The Swedish sales force has thus been reduced, as have internal overhead services. The investments in technology and 3D production at the same time have resulted in the company having hired experts within these fields.

WEC360°

SYSTEMSVISUALIZATION SALES

SWEDEN

NORWAY

INTERNATIONAL

PROJECT MANAGEMENT

3D ARTISTS

INTERIOR DESIGNERS

wec360° is organised into three main components: visualisation, systems and sales. The visualisation department handles the ongoing production of the graphical elements. Systems is where the company's technical development for visualisation and system services takes place, while Sales is where the company's sales activities are centred.

wec360°'s staff and corporate culture are vital ingredients in the compa-ny's success. The images come from one of the company's team-building activities in 2018.

ORGANISATION & STAFF

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As one of the fastest growing and most profitable compa-nies in Sweden, wec360° was praised in 2018 by the Swedish newspaper Dagens Industri as a "Gazelle Company". wec360°s CTO Per Hjaldahl was

interviewed on national television at the Finnish Slush tech-fesitval in Helsinki.

Swedish Foreign Minister, Margot Wallström, visiting wec360° in New York.

BRAND & PR In 2018, as with previous periods, the company has worked strategically on its visibility and editorial channels and PR. The strategic cooperation and involvement in the public arena have helped the company to legitimise its trademark.

The cooperation with Samsung during this time has inter alia mani-fested itself in joint events, joint participation at Slush in Finland, and at the eFörvaltningsdagarna event in Stockholm.

We know from the good response we received in our contact with customers that our trademark is strong among our target group.

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VISIBILITY & EVENTSAs in previous years, in 2018 wec360° has made efforts toward visibility in its own industry events as well as participation in significant construction and property forums on those markets in which the company is active. The tech-events that wec360° arranged on its own over the year attracted a great number of visitors and drew a great deal of attention. They served as an important stage for exposing the company to its customers.

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A SELECTION OF CUSTOMERSwec360° provided 185 construction companies within residential and commercial properties in 2018, as well as a number of municipal councils with visualisations. Below is a selection.

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MEMBERS OF THE BOARD 2018

MATTIAS VON CORSWANT Founder/partnerChairman of the BoardMarketing Director

TOMAS JENNEBORGPartnerMember of the boardCEO

HÅKAN PETTERSSON PartnerMember of the board

MATT CONNORSNEW CHAIRMAN AS OF FEBRUARY 2019

Connors has a thorough background in Apple, Macromedia and Adobe and now most recently as Managing Director of Donya Labs. Conners' prima-ry task at wec360° is to accelerate the company's growth on international markets.

PER HJALDAHL Founder/partnerMember of the boardCTO

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CUSTOMER CASE GDSNY "1245 BROADWAY"

In order to preview the exciting design of our boutique class A office development at 1245 Broadway in New York City, we have been working with wec360°s cutting edge technology, including Augmented Reality and Virtual Reality.

Exceeding our expectations for visualization, our 1245 Broadway project has come to life years before it is completed. The technology is

strengthening our ability to showcase spaces to our potential tenants and provide a realistic insight into our vision of delivering exceptional working environments to New York City.

In the fierce competiton of today's marketplace, I believe that wec360°s technology gives us access to extraordinary visualization tools. ” /Michael Kirchmann

Founder & CEO at GDSNY

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In this challenging project where the past and future meet, wec360° helped to visualise how the final result may appear. Through close cooperation with IHUS, our interior designers could come up with an innovative and attractive solution, where the two

worlds of the past and the present meet. This yielded interior and exterior still images, as well as a VR experience.

This is one of our commercial projects. You can read more about other commercial pro-jects, such as Friends Arena, Tele2 Arena and more on wec360° home page.

CUSTOMER CASE IHUS "BICYCLE FACTORY" As late as the 1950, there were 135 factories around Uppsala. The largest of these was a bicycle factory known as Nymans Cykelfabrik. When the wheels were spinning at their fastest, some 150,000 bicycles were manufactured every year at the factory, which at the time was the largest in Europe. IHUS shall transform what was at the beginning of the 20th century a number of modern industrial premises into modern offices. Now, as then, the building is called "Cykelfa-briken", meaning "bicycle factory".

"Through collaboration with wec360°, we have been able to produce 3D images that show us the final result. We see many innovative and smart solutions that truly allow the industry to meet the modern office."

- Hanna Johansson Administrative Director at IHUS”23

FINANCIAL REPORTAnnual report for financial year 2018-01-01 - 2018-12-31

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ANNUAL OVERVIEW (TSEK) 2018 2017 2016 2015 2014

Net sales 28 080 32 032 24 159 16 412 6 907Profit after financial items 685 -1 723 1 844 1 427 422Balance sheet total 11 986 10 590 9 101 5 890 4 272Solidity (%) 19 16 35 31 17

For definitions of key performance indicator, see accounting and valuation principles.

CHANGES IN EQUITYSharecapital

Reserve for development

Profitcarried

Net incomefor the

TotalOpening balance: 173 900 2 168 183 307 596 -1 005 221 1 644 458Disposition according to decision ofthis year's Annual General Meeting: -1 005 221 1 005 221 0Reserve for development expenditure: 2 196 882 -2 196 882 0Net income for the year: 677 129 677 129Closing balance: 173 900 4 365 065 -2 894 507 677 129 2 321 587

PROPOSED DISPOSITION OF EARNINGSThe Board of Directors proposes that the accumulated loss be allocated as follows

retained loss -2 894 505net income for the year 677 129

-2 217 376

Allocated so thatto be carried forward -2 217 376

-2 217 376

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INCOME STATEMENT NOTE 2 018 2 0171

Operating incomeNet sales 28 080 141 32 032 034Other operating income 220 535 47 318

28 300 676 32 079 352

Operating expensesSubcontractors -4 809 981 -7 122 836Other external expenses -6 013 759 -8 457 792Personnel costs 2 -15 708 777 -17 556 413Depreciations of intangible and tangible fixed assets -881 159 -587 097

-27 413 676 -33 724 138Operating profit 887 000 -1 644 786

Profit and loss from financial itemsInterest income 0 1 297Interest expenses and similar income items -202 148 -79 552

-202 148 -78 255Profit after financial items 684 852 -1 723 041

Transfer to untaxed reserves 3 0 716 118Profit before tax 684 852 -1 006 923

Tax -7 723 1 702Net income for the year 677 129 -1 005 221

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BALANCE SHEET NOTE 2 018 2 0171

ASSETS

Fixed assets

Intangible fixed assetsBalanced expenses for development work and 4 4 465 067 2 568 196similar work

Tangible fixed assetsEquipment, tool and installations 5 424 244 287 599Improvement leasehold 6 59 154 28 072

483 398 315 671

Financial fixed assetsEquity in group companies 7 44 322 0Other long-term receivables 8 23 795 0Deffered tax asset 9 13 517 1 702

81 634 1 702

Total fixed assets 5 030 099 2 885 569

Current assets

Current receivablesAccount receivable 2 917 636 4 810 315Receivables from group companies 1 969 696 0Tax receivables 357 525 459 429Other receivables 170 980 174 947Prepaid expenses and accrued income 352 516 439 849Recognised but not invoiced income 317 000 743 000

6 085 353 6 627 540

Cash and bank 10 870 541 1 076 540Total current assets 6 955 894 7 704 080

TOTAL ASSETS 11 985 993 10 589 649

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SHAREHOLDERS’ EQUITY AND LIABILITIES NOTE 2 018 2 017

Shareholder´s equity 11Restricted equityShare capital 173 900 173 900Reserve for development expenditure 4 365 065 2 168 183

4 538 965 2 342 083

Non-restricted equityRetained earnings -2 894 505 307 598Net income for the year 677 129 -1 005 221

-2 217 376 -697 623Total shareholders’ equity 2 321 589 1 644 460

Long-term liabilitiesLiabilities to credit institutions 2 782 863 807 016

Short-term liabilitiesSkulder till kreditinstitut 1 280 220 192 984Accounts payable 1 137 209 1 923 907Other liabilities 1 313 639 2 003 666Accrued expenses and prepaid income 12 3 150 473 4 017 616Total short-term liabilities 6 881 541 8 138 173

SUM SHAREHOLDERS’ EQUITY AND LIABILITIES 11 985 993 10 589 649

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General informationThe annual report has been prepared in accordance with the Annual Accounts Act and BFNAR 2012:1 Årsredovisning och koncernredovisning (K3) The company is a small limited liability company that voluntarily applies K3 and has consequently made use of certain opportunities for exemption in the an-nual report, including not reporting a cash flow sta-tement. Foreign currancy translation Receivables and liabilities in foreign currency have been valued at the closing day rate. Exchange rate difference on operating receivables and operating liabilities are recognized in operating profit, while ex-change difference on financial receivables and liabili-ties are reported as financial items. Revenue recognition Revenue has been recognized at fair value by what has been received or will be received and reported to the extent that it is probable that the economic bene-fits will be utilized by the company and the revenues can be calculated reliably. Ongoing service assignments Revenue from assignments at a fixed price is repor-ted as revenue according to the assignment's res-pective degree of completion, so-called percentage of completion. The degree of completion is mainly determined by comparing committed assignment expenses with total assignment expenses.

When the outcome can be calculated in a reliable manner, the commission income and related assign-ment expenses reported in the income statement on the basis of the degree of completion of the activities on the balance sheet date.

If the financial outcome of an assignment cannot be calculated reliably, an income is only reported with an amount corresponding to the contract expenses that are likely to be replaced by the client. If it is probable that the total assignment costs will exceed the total commission income from an assignment, the antici-pated loss is reported as a cost immediately in the income statement. In the balance sheet, reported income is compared with the amounts invoiced to the client during the same period. If the invoiced amounts exceed the re-ported income, the difference is a liability, which is reported as invoiced but unrecognized revenue. If the income exceeds the invoiced amounts, the differen-ce is a receivable which is reported as recognised but not invoiced incomer. Principles of consolidiation The company is a parent company, but does not prepare consolidated accounts with reference to the exception rule in the Annual Accounts Act Chapter 7 Section 3 (smaller group).

Accounting principles for indivi-dual balance sheet items Intangible fixed assets The company reports internally generated intangible fixed assets according to the activation model. This means that all expenses relating to the production of internally generated intangible fixed assets are capi-talized and depreciated during the asset's estimated useful life, provided that the criteria in BFNAR 2012: 1 are fulfilled. Tangible fixed assets Fixed assets are reported at historical cost less ac-cumulated depreciation according to plan and any write-downs. Depreciation is made on a straight-line basis over the expected useful life, taking into account significant residual value. The following depreciation rate is app-lied: Intangible fixed assets Balanced development work expenses 12,5-33% Tangible fixed assets Equipment, tool and installations 20-33%

Improvement leasehold20%

NOTE 1: ACCOUNTING AND VALUATION PRINCIPLES

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Leases The company reports all leases, both financial and operational, as operating leases. Operating leases are recognized as a cost on a straight-line basis over the lease period.

Income taxes Current tax Current tax refers to income tax for the current fiscal year and the part of the previous fiscal year's income tax that has not yet been reported. Current tax is cal-culated on the basis of the tax rate applicable on the balance sheet date. Deffered tax Deferred tax is income tax that relates to future finan-cial years as a result of past events. Accounting takes place in accordance with the balance sheet method. According to this method, deferred tax liabilities and deferred tax assets are reported on temporary diffe-rences arising between the booked amounts and tax values of assets and liabilities as well as for other tax deductions or deficits. Deferred tax assets are reported net against defer-red tax liabilities only if they can be paid with a net amount. Deferred tax is calculated based on the current tax rate on the balance sheet date. Effects of changes in current tax rates are recognized in the period in which the change is statutory. Deferred tax assets are reported as financial fixed assets and de-ferred tax liabilities as provisions. Deferred tax assets relating to loss carryforwards or other future tax deductions are reported to the extent that it is probable that the deductions can be offset against future taxable profits. Due to the connection between accounting and tax-

ation, the deferred tax liability that is attributable to untaxed reserves is not reported separately. Total tax consists of current tax and deferred tax. Taxes are recognized in the income statement, ex-cept when the underlying transaction is reported di-rectly against equity, whereby associated tax effects are reported in equity. Government grants Contributions from the government are reported at fair value when it is reasonable and certain that the grant will be received and the company will fulfill the conditions associated with the grant. Contributions intended to cover investments in tangible or intan-gible fixed assets reduce the acquisition value of the assets and thus the depreciable amount.

DEFINITION OF KEY FIGURES Net sales Operating income, invoiced expenses, side revenue and revenue adjustments. Profit after financial items Profit after financial income and expenses but before appropriations and taxes.Balance sheet total Total assets of the company. Solidity (%) Adjusted equity (equity and untaxed reserves less deduction for deferred tax) as a percentage of total assets. Estimates and assessments The following assumptions about the future and other significant sources of uncertainty in estimates on the balance sheet date could entail a significant risk of a significant adjustment of the reported values

for assets and liabilities during the next financial year: Recoverable amount of the value of development costs The company has invested significant amounts in development. Accounting for development expenses as an asset requires that assessments be made that the product in the future is expected to be technical-ly and commercially useful and that future economic benefits are likely. Depreciation takes place over an estimated useful life. The useful life may be reviewed, which may entail a need for impairment. Percentage of completion The company applies a percentage of completion for calculation of profit for customer contracts at a fixed price. Assessment of total costs is critical in connec-tion with ongoing recognition of income and provi-sion for loss contracts. The outcome of technical and commercial risks may affect the result.

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Note 2: Average number of employees

2018 2017

Average number of employees 26 28

Note 3: Transfer to/from untaxed reserves

2018 2017

Provision for tax allocation reserve 0 0

Reversal from tax allocation reserve 0 672 000

Change in additional depreciation 0 44 118

0 716 118

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Note 4: Balanced expenses for development work and similar work

Accumulated acquisition values have been reduced by government grants of SEK 312,080 (134,700)

2018-12-31 2017-12-31

Opening balance, acquisition value 4 636 138 3 051 763

Investments 2 613 928 1 584 375

Sales/disposals 0 0

Closing balance, acquisition value 7 250 066 4 636 138

Opening balance, depreciation -2 067 942 -1 582 324

Sales/disposals 0 0

Depreciation for the year -717 057 -485 618

Closing balance, accumulated depreciation -2 784 999 -2 067 942

Carrying amount 4 465 067 2 568 196

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Note 5: Equipment, tool and installations

2018-12-31 2017-12-31

Opening balance, acquisition value 617 285 448 327

Investments 286 231 168 958

Closing balance, acquisition value 903 516 617 285

Opening balance, depreciation -329 686 -232 025

Depreciation for the year -149 586 -97 661

Closing balance, accumulated depreciation -479 272 -329 686

Carrying amount 424 244 287 599

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Note 6: Improvement leasehold

2018-12-31 2017-12-31

Opening balance, acquisition value 38 390 174 246

Investments 45 600 0

Sales/disposals 0 -135 856

Closing balance, acquisition value 83 990 38 390

Opening balance, depreciation -10 318 -6 500

Depreciation for the year -14 518 -3 818

Closing balance, accumulated depreciation -24 836 -10 318

Carrying amount 59 154 28 072

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Note 7: Equity in group companies

2018-12-31 2017-12-31

Opening balance, acquisition value 0 0

Investments 44 322 0

Closing balance, acquisition value 44 322 0

Note 8: Other long-term receivables

2018-12-31 2017-12-31

Opening balance, acquisition value 0 0

Investments 23 795 0

Closing balance, acquisition value 23 795 0

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Note 9: Deferred tax on temporary differences

Temporary differences Deffered tax asset

Net

Deductible temporary differences 13 517 13 517

13 517 13 517

Change in deferred tax Reported in the result

Closing balance

Deductible temporary differences 11 815 11 815

11 815 11 815

Note 10: Bank overdraft facilities

2018-12-31 2017-12-31

The amount granted on the overdraft facility 3 300 000 2 500 000

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Note 11: Disposition of profit or loss

Proposed disposition of earnings 2018-12-31

The Board of Directors proposes that the accumulated loss be allocated as follows

retained loss -2 894 505

net income for the year 677 129

-2 217 376

Allocated so that

to be carried forward -2 217 376

-2 217 376

Note 12: Accrued expenses and prepaid income

2018-12-31 2017-12-31

Accrued salary 720 909 994 279

Vacation pay liability 848 569 855 332

Accrued social fees 746 555 943 269

Accrued subcontractor costs 557 000 915 000

Other accrued expenses 277 440 309 736

3 150 473 4 017 616

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Note 13: Deposit collateral

2018-12-31 2017-12-31

Mortgage 7 870 000 7 870 000

7 870 000 7 870 000

Note 14: Significant events after the end of the financial year

After the end of the financial year, the company has started the subsidiary we.c.360 USA Inc.

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To the general meeting of the shareholders of we.c.360 AB, corporate identity number 556768-9301

Report on the annual accounts

OpinionsI have audited the annual accounts of we.c.360 AB for the year 2018-01-01 - 2018-12-31. In my opinion, the annual accounts have been pre-pared in accordance with the Annual Accounts Act and present fairly, in all material respects, the finan-cial position of the we.c.360 AB as of December 31, 2018 and its 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.

I therefore recommend that the general meeting of shareholders adopts the income statement and ba-lance sheet.

Basis for OpinionsI conducted my audit in accordance with Internatio-nal Standards on Auditing (ISA) and generally accep-ted auditing standards in Sweden. My responsibilities under those standards are further described in the Auditor’s Responsibilities section. I am independent of the we.c.360 AB in accordance with professional ethics for accountants in Sweden and have otherwi-se fulfilled my ethical responsibilities in accordance with these requirements.

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

Responsibilities of the Board of Directors and the Managing DirectorThe Board of Directors and the Managing Director are responsible for the preparation of the annual ac-counts and that they give a fair presentation in ac-cordance with the Annual Accounts Act. The Board of Directors and the Managing Director are also re-sponsible for such internal control as they determi-ne is necessary to enable the preparation of annual accounts that are free from material misstatement, whether due to fraud or error.

In preparing the annual accounts, the Board of Di-rectors and the Managing Director are responsible for the assessment of the company’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 ba-sis of accounting is however not applied if the Board of Directors and the Managing Director intend to li-quidate the company, to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilityMy objectives are to obtain reasonable assurance about whether the annual 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 assur-ance, but is not a guarantee that

an audit conducted in accordance with ISAs and ge-nerally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggrega-te, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual accounts.

As part of an audit in accordance with ISAs, I exerci-se professional judgment and maintain professional skepticism throughout the audit. I also:

• Identify and assess the risks of material misstate-ment of the annual accounts , whether due to fraud or error, design and perform audit procedures re-sponsive 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 misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collu-sion, forgery, intentional omissions, misrepresenta-tions, 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 circumstan-ces, but not for the purpose of expressing an opi-nion on the effectiveness of the company’s internal control. • Evaluate the appropriateness of accounting poli-cies used and the reasonableness of accounting es-timates and related disclosures made by the Board of Directors and the Managing Director.

AUDITOR'S REPORT

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• Conclude on the appropriateness of the Board of Di-rectors’ and the Managing Director’s use of the going concern basis of accounting in preparing the annu-al 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 ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw at-tention in my auditor’s report to the related disclosu-res in the annual accounts or, if such disclosures are inadequate, to modify my opinion about the annual accounts. My conclusions are based on the audit evi-dence obtained up to the date of my auditor’s report. However, future events or conditions may cause a company to cease to continue as a going concern.• Evaluate the overall presentation, structure and content of the annual accounts, including the disclo-sures, and whether the annual accounts represent the underlying transactions and events in a manner that achieves fair presentation.

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 in-ternal control that I identified.

Report on other legal and regulatory re-quirements

OpinionsIn addition to my audit of the annual accounts, I have also audited the administration of the Board of Di-rectors and the Managing Director of we.c.360 AB for the year 2018-01-01 - 2018-12-31 and the pro-posed appropriations of the company’s profit or loss.

I recommend to the general meeting of shareholders that the loss be dealt with in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Managing Director be discharged from liability for the financial year.

Basis for OpinionsI conducted the audit in accordance with generally accepted auditing standards in Sweden. My respon-sibilities under those standards are further described in the Auditor’s Responsibilities section. I am inde-pendent of the we.c.360 AB in accordance with pro-fessional ethics for accountants in Sweden and have otherwise fulfilled my ethical responsibilities in accor-dance with these requirements.

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

Responsibilities of the Board of Directors and the Managing DirectorThe Board of Directors is responsible for the proposal for appropriations of the company’s profit or loss. At the proposal of a dividend, this includes an assess-ment of whether the dividend is justifiable conside-ring the requirements which the company's type of operations, size and risks place on the size of the company's equity, consolidation requirements, liqui-dity and position in general.

The Board of Directors is responsible for the com-pany’s organization and the administration of the company’s affairs. This includes among other things continuous assessment of the company’s financial si-tuation and ensuring that the company's organization is designed so that the accounting, management of assets and the company’s financial affairs otherwise

are controlled in a reassuring manner. 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 management of assets in a reassuring manner.

Auditor’s responsibilityMy objective concerning the audit of the administra-tion, and thereby my opinion about discharge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any mem-ber of the Board of Directors or the Managing Di-rector in any material respect:

• has undertaken any action or been guilty of any omission which can give rise to liability to the com-pany, or• in any other way has acted in contravention of the Companies Act, the Annual Accounts Act or the Ar-ticles 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 rea-sonable 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 guarantee that an audit conducted in ac-cordance 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 appropriations of the company’s profit or loss are not in accordance with the Companies Act.

As part of an audit in accordance with generally ac-

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cepted auditing standards in Sweden, I exercise professional judgment and ma-intain professional skepticism throug-hout the audit. The examination of the administration and the proposed appro-priations of the company’s profit or loss is based primarily on the audit of the accounts. Additional audit procedures performed are based on my professio-nal 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 particular im-portance for the company’s situation. I examine and test decisions undertaken, support for decisions, actions taken and other circumstances that are relevant to my opinion concerning discharge from liability. As a basis for my opinion on the Board of Directors’ proposed appropri-ations of the company’s profit or loss I examined whether the proposal is in ac-cordance with the Companies Act.

Örebro 2/5-2019

Per Modin Authorized public accountant/Deputy auditor

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INSPIRING GREAT DECISIONS