7437003V4S76KM56UW702024-01-012024-12-317437003V4S76KM56UW702023-01-012023-12-317437003V4S76KM56UW702023-12-317437003V4S76KM56UW702024-12-317437003V4S76KM56UW702022-12-317437003V4S76KM56UW702024-12-31ifrs-full:IssuedCapitalMember7437003V4S76KM56UW702024-01-012024-12-31ifrs-full:IssuedCapitalMember7437003V4S76KM56UW702024-12-31ifrs-full:OtherReservesMember7437003V4S76KM56UW702024-01-012024-12-31ifrs-full:OtherReservesMember7437003V4S76KM56UW702024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember7437003V4S76KM56UW702024-01-012024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember7437003V4S76KM56UW702024-12-31ifrs-full:TreasurySharesMember7437003V4S76KM56UW702024-01-012024-12-31ifrs-full:TreasurySharesMember7437003V4S76KM56UW702024-12-31qpr1v:ReserveForInvestedUnrestrictedEquityMember7437003V4S76KM56UW702024-01-012024-12-31qpr1v:ReserveForInvestedUnrestrictedEquityMember7437003V4S76KM56UW702024-12-31ifrs-full:RetainedEarningsMember7437003V4S76KM56UW702024-01-012024-12-31ifrs-full:RetainedEarningsMember7437003V4S76KM56UW702022-12-31ifrs-full:IssuedCapitalMember7437003V4S76KM56UW702022-12-31ifrs-full:OtherReservesMember7437003V4S76KM56UW702022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember7437003V4S76KM56UW702022-12-31ifrs-full:TreasurySharesMember7437003V4S76KM56UW702022-12-31qpr1v:ReserveForInvestedUnrestrictedEquityMember7437003V4S76KM56UW702022-12-31ifrs-full:RetainedEarningsMember7437003V4S76KM56UW702023-01-012023-12-31ifrs-full:RetainedEarningsMember7437003V4S76KM56UW702023-01-012023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember7437003V4S76KM56UW702023-01-012023-12-31ifrs-full:IssuedCapitalMember7437003V4S76KM56UW702023-01-012023-12-31ifrs-full:OtherReservesMember7437003V4S76KM56UW702023-01-012023-12-31ifrs-full:TreasurySharesMember7437003V4S76KM56UW702023-01-012023-12-31qpr1v:ReserveForInvestedUnrestrictedEquityMember7437003V4S76KM56UW702023-12-31ifrs-full:IssuedCapitalMember7437003V4S76KM56UW702023-12-31ifrs-full:OtherReservesMember7437003V4S76KM56UW702023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember7437003V4S76KM56UW702023-12-31ifrs-full:TreasurySharesMember7437003V4S76KM56UW702023-12-31qpr1v:ReserveForInvestedUnrestrictedEquityMember7437003V4S76KM56UW702023-12-31ifrs-full:RetainedEarningsMemberiso4217:EURiso4217:EURxbrli:shares
Graphics


1 (80)








QPR SOFTWARE PLC
FINANCIAL STATEMENTS
AND BOARD OF DIRECTORS’
REPORT
2024








Graphics


2 (80)




Financial Statements and Board of Directors’ Report 2024


Board of Directors’ Report 3

Consolidated Comprehensive Financial Statements 25

Parent Company’s Financial Statements 62

Signature of Board of Directors’ Report and Financial Statements 80

Auditor’s Note 80








Graphics


3 (80)



BOARD OF DIRECTOR’S REPORT

Summary of the Financial Year 2024
• SaaS net sales increased by +15%
• Software net sales increased by +14%
• Net sales were 6,614 thousand euros, down -12% (7,750) due to company’s discontinuation of
consulting outside the core business.
• EBITDA was 1,020 thousand euros (182), a difference of +838 thousand euros from the
corresponding period
• The operating profit was -16 thousand euros (-813), a difference of +797 thousand euros from
the corresponding period.
• Profit before taxes was -103 thousand euros (-924), a difference of +821 thousand euros from
the corresponding period.
• The result was -82 thousand euros (-924), a difference of +842 thousand euros from the
corresponding period.
• Earnings/share was -0.005 euros (-0.055)
• Cash flow from operations 806 thousand euros (849), a difference of -43 thousand euros
from the corresponding period.

REPORTING AND BUSINESS OPERATIONS

QPR Software Plc is a pioneer in business process optimization solutions and has positioned itself
as a leading player in Digital Twin of an Organization (DTO) technology and one of the most
advanced process mining software companies in the world.
QPR innovates, develops, and delivers software for analyzing, monitoring and modeling the
operations of organizations. The company also offers consulting services to ensure that customers
get full value from the software and associated methods.
QPR Software reports one business segment, which is Organizational Development of
organizations. In addition to this, the Company reports revenue from products and services as
follows: Software licenses, Renewable software licenses, Software maintenance services, Cloud
services, and Consulting.
The company's reported recurring revenues consist of SaaS net sales, maintenance services, as well
as revenue from renewable licenses. Licenses are sold to customers for perpetual use or for an
agreed, limited period. The revenue from SaaS and maintenance services is recorded monthly as
recurring revenue over the contract period.
Renewable software licenses are sold to customers as a user right with an indefinite-term contract.
These contracts are automatically renewed at the end of the agreed period, usually one year, unless
the agreement is terminated within the notice. Renewable license revenue is recognized at one
point in time, in the beginning of the invoicing period, yet at the earliest on the delivery.

Graphics


4 (80)



In the future, the company will prioritize offering consulting services tailored to the software it
develops, aiming to deliver maximum added value to its customers.
The company began reporting the production costs of the cloud platform within the materials and
services expense category starting from 2024. The figures for the comparative period will be
presented at the end of this financial bulletin’s table section, according to both reported and 2024
cost groupings.
NET SALES
The net sales for January–December was 6,614 thousand euros (7,550), marking a 12% decline
compared to the previous year. This decrease was primarily due to the company's decision to
discontinue non-core consulting services in Finland at the end of 2023. The share of recurring
revenue in total revenue increased from 61% to 73%.
Our SaaS net sales, which is at the core of our strategy, grew by 15%, and software revenue
increased by 14%. The share of software net sales in total revenue grew from 67 percent to 87
percent.
The net sales from software licenses was 926 thousand euros (485), reflecting a 91% increase. This
growth was primarily driven by a higher volume of partner sales, particularly among customers in
the Middle East, as well as the expansion of an existing agreement with a global pharmaceutical
company. Additionally, the company achieved broader success in partner-driven sales across
multiple geographic regions.
The net sales from renewable software licenses amounted to 420 thousand euros (504), a decrease
of 17%. This decrease was driven by individual customers transitioning to the SaaS service model,
customer churn, and negative exchange rate effects. These factors were partially offset by new
customer acquisitions and price increases implemented to counter inflationary pressure.
The net sales from software maintenance services amounted to 1,717 thousand euros (1,720). The
decline in net sales was negatively impacted by customer churn, a decline in revenue from
individual customers, and, to a lesser extent, the transition of existing customers to the SaaS service
model. The decline was partially offset by the expansion of cooperation with existing customers,
the inclusion of Middle Eastern customers’ projects under maintenance services, new customer
contracts, and the previously agreed expansion with a global pharmaceutical company.
Additionally, price increases to counter inflationary pressures and favorable currency exchange rate
effects contributed to net sales growth.
SaaS net sales grew by 15% to 2,721 thousand euros (2,371). The growth was primarily driven by
successful new customer acquisitions and the expansion of existing customer relationships. Price
increases to counter inflationary pressure, as well as customers transitioning from licenses to the
SaaS service model, also contributed to the growth. On the other hand, customer churn and
revenue decline in certain accounts had a negative impact on SaaS revenue growth.
Consulting net sales was 830 thousand euros (2,469), a decrease of 66%, following the company's
discontinuation of consulting services outside its core business in Finland. Additionally, the
company recognized revenue from fixed-price projects in the Middle East according to their
completion status during the first half of 2023. These projects were completed in the second
quarter of the same year. In the comparison period, the company had a large customer project in
Europe, but there was no similar project during this reporting period.

Graphics


5 (80)



completion status during the first half of 2023. These projects were completed in the second
quarter of the same year. In the comparison period, the company had a large customer project in
Europe, but there was no similar project during this reporting period.
The Group’s net sales was 39% (46) from Finland, 40% (42) from the rest of Europe (including
Turkey) and 21% (12) from the rest of the world.

NET SALES BY PRODUCT GROUP
The Group's net sales consists of software and consulting business and was divided as follows:

NET SALES BY PRODUCT GROUP
The Group's net sales consists of software and consulting business and was divided as
follows:

(EUR 1,000)
Change

2024
2023
%
Software licenses
926
485
91 %
Renewable software licenses
420
504
-17 %
Software maintenance services
1 717
1 720
0 %
Cloud services
2 721
2 371
15 %
Consulting services
830
2 469
-66 %
Total net sales
6 614
7 550
-12 %

NET SALES BY GEOGRAPHIC AREA
The reported geographical areas are Finland, the rest of Europe including Turkey, and the
rest of the world. Revenue is presented based on the customer's location.

Group, IFRS


(EUR 1,000)
Change

2024
2023
%
Finland
2 579
3 499
-26 %
Europe incl. Turkey
2 656
3 128
-15 %
Rest of the world
1 379
923
49 %
Total net sales
6 614
7 550
-12 %

NET SALES DEVELOPMENT
The Group's EBITDA for January–December was 1,020 thousand euros (182), an increase of 838
thousand euros compared to the previous year. The operating result was -16 thousand euros (-813),
showing an improvement of 797 thousand euros compared to the same period last year. The result

Graphics


6 (80)



The active measures implemented by the company in 2023 to improve cost structure and develop
business profitability are already partially visible in the first quarter of 2024 and fully realized by the
third quarter.
The Group’s variable costs amounted to 1,026 thousand euros (1,241). The increase in costs was
primarily driven by higher partner commissions, resulting from significant license deals won in the
Middle East.
The company’s fixed costs amounted to 4,701 thousand euros (6,127), a decrease of 23% compared
to the previous year. This decrease was driven by cost-saving programs implemented in the second
and final quarters of 2023, as well as lower personnel expenses resulting from the outcomes of
change negotiations. The full impact of the cost-saving measures realized starting from the third
quarter of 2024. The effect of these savings was partially offset by lower R&D capitalizations and
investments required for the reorganization of the company's operational activities.
Earnings per share were EUR -0.005 (-0.055) per share.

FINANCE AND INVESTMENTS
In 2024, the company's free cash flow, including cash flows from operations, investments, and office
lease payments, totaled 436 thousand euros (108). The significant improvement in free cash flow
resulted from stronger operating cash flow, a substantial decrease in investment-related cash
outflows, and lower paid office lease expenses.
The cash flow from operations during the review period amounted to 806 thousand euros (849).
The primary reason for this change compared to the comparable period was successful collection
in the last quarter of 2023, particularly regarding the advanced license payments for 2024. Annual
billing is mostly concentrated around the end of the year, making it seasonal.
The change in working capital was affected by higher sales commissions paid to the company's
personnel for 2023, as well as holiday compensation for employees who left due to the change
negotiations. The negative cash flow was also due to the fact that the largest new deals occurred in
a market where payment behavior is slow.

The positive cash flow in the fourth quarter was primarily driven by successful collection of
receivables and lower costs. Compared to the same period last year, a significant reduction in
expenses is a key reason for the clear improvement in operational cash flow.
Net financial expenses amounted to 87 thousand euros (111), including exchange losses of 17
thousand euros (14).
Investments totaled 753 thousand euros (637), and those were mainly research and development
investments and investments in leased assets.
The company’s net financing net cash flow for the period January–December was -539 thousand
euros (639). The negative cash flow was primarily due to a scheduled loan repayment of EUR 500
thousand. Additionally, during the comparison period, the company raised 760 thousand euros
through a directed share issue.

Graphics


7 (80)



The group's financial situation is satisfactory. At the end of the review period, the group's cash and
cash equivalents were 825 thousand euros (884). Short-term receivables were 2,024 thousand
(1,706).
Euro-denominated receivables accounted for 80%, and 67% of invoices had not yet matured. Of the
total amount of short-term receivables, the share of 1-30 days overdue receivables was 26%, 30-60
days 2% and more than 60 days 5%.
The Group has an available credit limit of 500,000 thousand euros, which remained unused at the
end of the financial year.
At the end of the reporting period, the Group had bank loans totaling 1,000 thousand euros, of
which 500 thousand euros was short-term and 500 thousand euros was long-term debt. In
accordance with the original financing agreement, the first installment of 500 thousand euros was
due on January 31, 2024. After this, installments of 500 thousand euros will mature annually in
January 2025 and 2026. The covenants related to the loan are based on the company's EBITDA and
equity ratio. The EBITDA of the covenants is tested every six months, and the equity ratio is tested
annually according to the situation on the last day of the year. Both covenants exceeded the
agreed threshold in 2024.
The equity ratio increased to 11.9% (8.1%), driven by higher level of received advance payments and
an improved financial result for the fiscal year.
The new lease agreement signed in June 2024 negatively impacts the company's equity ratio, as
the IFRS 16 interest effect increases the lease liability by approximately 100 thousand euros.

PRODUCT DEVELOPMENT
QPR has positioned itself as a leading player in Digital Twin of an Organization (DTO) technology.
The company innovates and develops software products that analyze, measure, and model the
operations of organizations. The Company develops the following software products: QPR
ProcessAnalyzer, QPR EnterpriseArchitect, QPR ProcessDesigner, and QPR Metrics.
Total product development expenses for the year amounted to 979 thousand euros (1,427), with 341
thousand euros (637) capitalized on the balance sheet. Product development depreciation was
recorded at 919 thousand euros (782). The amortization period for capitalized development costs is
four years.

PERSONNEL
At the end of the review period, the group employed 32 people (49). The average number of
personnel in 2024 was 33 (57).
The average age of the personnel is 45 (46) years. Women account for 22% (22) of employees, and
men for 78% (78). Of all personnel, 20% (13) work in sales and marketing, 31% (44) in consulting and
customer care, 39% (33) in product development, and 9% (10) in administration.
Personnel expenses were 3,467 thousand euros (5,287), of which the share of salaries and bonuses
was 2,955 thousand euros (4,425).

Graphics


8 (80)



For incentive purposes, the company has a bonus program covering the entire personnel. The
short-term compensation of the executive management consists of a base salary, fringe benefits,
and a potential performance-based bonus. Additionally, the company has a stock option program
for key personnel.

CHANGES IN GROUP STRUCTURE
There were no changes in the Group structure in 2024.

STOCK OPTION PROGRAM
The Board of Directors of QPR Software Plc decided in its meeting on September 9, 2024, based on
the authorization granted by the General Meeting, to introduce a new stock option program for key
personnel in addition to the existing 2022 and 2023 option programs.
QPR Software has implemented stock option programs for 2022, 2023, and 2024 as part of its
incentive and retention program for key personnel. The purpose of the stock options is to
encourage key employees to contribute to the long-term growth of shareholder value and to
strengthen employee retention within the company. The stock options are granted free of charge.
The subscription period for the company’s previous 2019 B option program was from January 1,
2023, to January 31, 2024. No shares were subscribed under this program.
Stock Option Program 2022
The 2022 stock option program is designated as 2022. The subscription period for shares under
these options is from June 15, 2025, to May 31, 2027. The shares subscribed with the 2022 options
correspond to a maximum of 1.9% of the company’s shares and voting rights after potential share
subscriptions, provided that new shares are issued in the subscription process. As a result of these
subscriptions, the number of the company's shares may increase by a maximum of 489,542 shares
if new shares are issued.
The subscription price per share under the 2022 stock options is EUR 0.85, which corresponds to
the market price of the company’s share at the time of issuance. The estimated total cost impact of
the 2022 option program is approximately EUR 88,000.
Stock Option Program 2023
The 2023 stock option program is designated as 2023. The subscription period for shares under
these options is from September 6, 2026, to September 6, 2028. The shares subscribed with the
2023 options correspond to a maximum of 5.2% of the company’s shares and voting rights after
potential share subscriptions, provided that new shares are issued in the subscription process. As a
result of these subscriptions, the number of the company’s shares may increase by a maximum of
1,000,000 shares if new shares are issued.
The subscription price per share under the 2023 stock options is EUR 0.42, which corresponds to
the market price of the company’s share at the time of issuance. The estimated total cost impact of
the 2023 option program is approximately EUR 150,000.


Graphics


9 (80)



Stock Option Program 2024
Under the 2024 stock option program, a total of up to 1,800,000 stock options will be granted,
entitling holders to subscribe for a total of up to 1,800,000 new or treasury shares of the company.
The shares issued based on the stock options correspond to a maximum of 9.0% of the company’s
total shares.
2024A Stock Options
The 2024A stock options are designated as 2024A. The subscription period for shares under these
options is from September 10, 2027, to September 9, 2029. The shares subscribed with the 2024A
options correspond to a maximum of 4.0% of the company’s shares and voting rights after
potential share subscriptions, provided that new shares are issued in the subscription process. As a
result of these subscriptions, the number of the company’s shares may increase by up to 720,000
shares if new shares are issued.
The subscription price per share under the 2024A stock options is EUR 0.59, which corresponds to
the market price of the company’s share at the time of issuance. The estimated total cost impact of
the 2024A option program is approximately EUR 131,000.
2024B and 2024C Stock Options
A total of 540,000 stock options will be issued under the designation 2024B, and an additional
540,000 stock options under 2024C.
The subscription period for shares under the 2024B stock options is from September 9, 2028, to
September 8, 2030.
The subscription period for shares under the 2024C stock options is from September 9, 2029, to
September 8, 2031.
The theoretical market value of the 2024B and 2024C stock options will be determined at the time
of issuance.
The terms and conditions of the 2022, 2023, and 2024 stock option programs are available on the
company's website: www.qpr.com/investors.



STRATEGY
QPR Software’s mission is to innovate, develop, and deliver software solutions for analyzing,
monitoring, and modeling organizational operations. The company also provides consulting
services to ensure that customers derive full value from its software and related methodologies.
On December 14, 2023, QPR Software Plc refined its existing strategy to reflect market changes and
the company’s key focus areas and announced updated financial targets for the strategy period.
Under the refined strategy, the company positions itself more strongly as a software and SaaS
provider, a consultant for its core business areas, and a leading player in Digital Twin of an
Organization (DTO) technology. The goal of the refined strategy is to further enhance the value
delivered to customers and drive company growth through focus and specialization.

Graphics


10 (80)



In line with the 2024–2027 strategy, the company will focus on the international growth of its
Digital Twin of an Organization (DTO) offering, with process mining SaaS solutions at its core.
Additionally, the DTO offering includes software solutions developed for modeling, strategic
performance management, and measurement.
QPR Software’s updated financial targets for 2024–2027, published in December 2023, are:
• An average annual SaaS growth of 20%, and
• Sustainable operating profit.
The company will update its financial targets for the coming years in 2025.
In line with the strategy announced on March 10, 2022, QPR Software continues to build new
strategic partner networks to achieve a scalable go-to-market model, expand its offering, and
increase customer value in collaboration with technology and implementation partners. The
company focuses its growth investments in Europe and the Middle East, while also expanding into
new markets, such as North America, through its partner network.
The stock exchange release related to the strategy update is available in the Investors section on
the company’s website.

PARENT’S COMPANY’S FINANCIAL PERFORMANCE AND POSITION
During the reporting period, the parent company’s revenue amounted to EUR 6,098,792,
representing a 12.3% decrease compared to the previous year (2023: EUR 6,957,506). The decline in
revenue was primarily due to decreased consulting income, partially offset by growth in the
software business.
The parent company’s operating result as a percentage of revenue was -9%, totaling EUR -534,617
(2023: -13%, EUR -934,116). The improvement in the operating result was driven by cost-saving
measures and growth in the software business, but was negatively impacted by the decline in
public sector consulting revenue in Finland and lower other income.
In addition to the aforementioned factors, the parent company’s net result improved to EUR -
643,379 (2023: EUR -1,402,736) due to lower financial expenses compared to the previous year.
Financial expenses amounted to EUR 108,762 (2023: EUR 160,010).
At the end of the 2024 financial year, the company's share capital stood at EUR 80,000, divided into
18,175,192 shares. The company has a single share class, with one vote per share and equal dividend
rights. The book value per share is EUR 0.11, and all shares are registered in the book-entry system
maintained by Euroclear Finland Oy.
The parent company’s equity at the end of the financial year amounted to EUR 516,693 (2023: EUR
1,112,072). The decrease in equity was due to the loss for the financial year.
As a result of the company’s cost-saving measures, the parent company’s short-term liabilities
decreased by EUR 316,322, totaling EUR 6,204,103. Short-term liabilities included EUR 2,442,634 in
loans from subsidiaries, while the parent company had loaned EUR 779,698 to its subsidiaries.
Additionally, short-term liabilities included EUR 2,185,830 in advance payments for 2025.

Graphics


11 (80)



The parent company’s return on equity (ROE) remained negative at -125%, staying at the same level
as the comparison period (2023: -126%). The equity ratio was 10% (2023: 14%).

SHARE CAPITAL, SHAREHOLDERS, AND SHARES
At the end of the 2024 financial year, the company's share capital amounted to EUR 80,000,
divided into 18,175,192 shares. The company has a single share class, with one vote per share and
equal rights to dividends. The accounting par value of a share is EUR 0.11. The shares are registered
in the book-entry system maintained by Euroclear Finland Oy.
At the end of the financial year, the company had 2,174 shareholders (2023: 1,943). During the
financial year, QPR Software’s shares were traded for a total of EUR 1,964,000 (2023: EUR 1,586,000),
averaging EUR 7,857 per trading day (2023: EUR 6,318).
The total trading volume was 3,842,304 shares (2023: 3,538,455 shares), representing 21.4% of
outstanding shares (2023: 19.8%). The average trading price was EUR 0.51 per share (2023: EUR 0.45).
The highest closing price during the financial year was EUR 0.82 (2023: EUR 0.75), and the lowest
was EUR 0.33 (2023: EUR 0.32).
The market capitalization of the company’s outstanding shares at the year-end closing price of EUR
0.81 per share was EUR 14.514 million.
In 2023, QPR Software Plc received the following notifications under Chapter 9, Section 5 of the
Finnish Securities Markets Act (AML):
• On August 23, 2023, AC Invest Oy notified that its direct shareholding in QPR Software Plc
had fallen below 5% of the total shares and voting rights.
• On August 23, 2023, Vesa-Pekka Leskinen notified that his direct shareholding in QPR
Software Plc had fallen below 10% of the total shares and voting rights.
• On August 23, 2023, Oy Fincorp Ab notified that its direct shareholding in QPR Software Plc
had risen above 20% of the total shares and voting rights.
During the 2024 financial year, the company did not receive any notifications under the Finnish
Securities Markets Act.

















Graphics


12 (80)




Major shareholders of QPR Software Plc, December 31, 2024

Registered owners No. Shares % of shares and votes
KEMPE ROGER KENNETH:
4 861 107
27 %
OY FINCORP AB 4 818 307 27 %
KEMPE ROGER KENNETH
42 800
0 %
LESKINEN VESA-PEKKA ILMARI: 1 768 759 10 %
LESKINEN VESA-PEKKA ILMARI
1 135 200
6 %
KAUPPAMAINOS OY 633 559 3 %
UMO CAPITAL OY
971 900
5 %
SIILASMAA RISTO KALEVI 805 333 4 %
OY TALCOM AB
562 000
3 %
LAMY OY 553 249 3 %
JUNKKONEN KARI JUHANI
520 824
3 %
PELKONEN JOUKO ANTERO: 442 000 2 %
POHJOLAN RAHOITUS OY
418 000
2 %
PELKONEN JOUKO ANTERO: 24 000 0 %
PIEKKOLA ASKO
413 917
2 %
LAAKSO JANNE JUHANI 383 275 2 %
QPR SOFTWARE OYJ
256 849
1 %
TRADEIRA OY 204 842 1 %
KEMPE PIA PAULINA
168 333
1 %
OY CATA-HOLDING AB 155 000 1 %
OY FORMIKAFINN AB
125 197
1 %
ERVI PERTTI OLAVI 104 095 1 %
LEINO RIKU PETTERI
102 100
1 %
NORDCENTERIN NUORISOVALMENNUKSEN
EDISTÄMISSÄÄTIÖ S
100 000
1 %
PALOHEIMO ASSET MANAGEMENT OY 89 955 0 %
PALOHEIMO GROUP OY
81 556
0 %



20 largest shareholders, total
12 750 291
70 %
Other shareholders, total 5 424 901 30 %
TOTAL
18 175 192
100 %
*exclude nominee registered shareholders






Graphics


13 (80)



Distribution of shareholding by size, December 31, 2024


Shareholders Shares and votes
Number of shares Number % Number %
1 - 500
1490
68,5
180 397
1,0
501 - 1 000
253
11,6
198 668
1,1
1 001 - 5 000
283
13,0
664 311
3,7
5 001 - 10 000
55
2,5
395 574
2,2
10 001 - 50 000
61
2,8
1 462 200
8,0
50 001 - 100 000
12
0,6
821 374
4,5
100 001 -1 700 000
20
0,9
14 452 668
79,5
Total

2 174

100

18 175 192

100

of which nominee
registered
7

1 867 928 10,3


Distribution of shareholding by sector, December 31, 2024


Shareholders: Shares and votes:
Sector Number % Number %
Private companies 47 2,2 3 794 618 20,9
Financial and insurance institutions 7 0,3 7 255 938 39,9
Households 2 109 97,0 6 867 216 37,8
Non-profit organizations 2 0,1 100 001 0,6
European union 5 0,2 150 419 0,8
Other countries 4 0,2 7 000 0,0
Total 2 174 100 18 175 192 100
,of which nominee registered 7 1 867 928 10,3


QPR Software Plc shareholding by Insiders and closely related persons, December 31, 2024



Shares Options

Members

By
controlled
entities

By closely
related
persons *)

2022 2023 2024 A
Board members:

231 655






Graphics


14 (80)



Management team
members:

39 121

9 350 430 977
790
000
576 000
* Shares held by spouses and persons under guardianship
OWN SHARES
The total number of the company's shares is 18,175,192, of which 256,849 shares are held by the
company as own shares. The total nominal value of these shares is EUR 28,253, and their acquisition
cost amounts to EUR 244,349.
The shares held by the company (own shares) represent 1.4% of the company’s share capital and
voting rights.

CORPORATE GOVERNANCE SYSTEM
QPR Software Plc (QPR) adheres to good corporate governance practices and high ethical
standards in its governance. The company’s governance principles comply with the Finnish Limited
Liability Companies Act, the Market Abuse Regulation (MAR), the Securities Markets Act, and other
regulatory requirements related to the governance of publicly listed companies. Additionally, QPR
Software follows its Articles of Association, as well as the Finnish Corporate Governance Code for
Listed Companies, issued by the Securities Market Association and effective from January 1, 2025,
and the Guidelines for Insider Trading, effective from January 1, 2021, as described on the company's
investor website.
A separate Corporate Governance Statement for 2024 was published alongside the Annual Report
on March 22, 2024.
The company’s governance principles and the Corporate Governance Statement are available in
the Investor Relations section of the company’s website: www.qpr.com/fi/sijoittajat.
The Investor Relations section also provides A description of insider management, Information on
major shareholders, The Articles of Association, The Board of Directors' rules of procedure, a
description of internal control and audit practices, presentations of the Board of Directors and the
Executive Management Team, a summary of the company’s disclosure policy, and all stock
exchange releases published during the financial year.

ANNUAL GENERAL MEETING
The Annual General Meeting of QPR Software Plc was held on May 15, 2024, in Helsinki. The General
Meeting adopted the Company's financial statements for the financial year 2023 and discharged
the members of the Board of Directors and the CEO from liability. The General Meeting resolved
that no dividend be paid based on the balance sheet adopted for the financial year ended on
December 31, 2023, and adopted the Company’s Remuneration Report and Remuneration Policy.
Further, the General Meeting resolved to authorize the Board of Directors to decide on share issues
and on the issue of other special rights entitling to shares as well as on the acquisition of own
shares.



Graphics


15 (80)



Annual accounts and the use of the profit shown on the balance sheet
The General Meeting adopted the Company’s financial statements and discharged the members of
the Board of Directors and the CEO from liability for the financial period January 1 – December 31,
2023. The General Meeting resolved that no dividend be paid based on the balance sheet adopted
for the financial year ended on December 31, 2023.
Remuneration of the members of the Board of Directors and the Auditor
The General Meeting resolved that the Chairman of the Board of Directors be paid 45,000 euros per
year and the other members of the Board of Directors 25,000 euros per year. Approximately 40
percent of the remuneration will be paid in shares and 60 percent in cash. The shares will be
granted as soon as possible after the Annual General Meeting and if the insider regulations allow it.
The members of the Board of Directors will also be reimbursed for travel and other expenses
incurred while they are managing the Company's affairs.
The remuneration of the Auditor shall be paid according to the reasonable invoice.
Board of Directors and Auditor
The General Meeting confirmed that the number of Board members is four (4). Pertti Ervi was re-
elected as the Chairman of the Board of Directors and Antti Koskela and Jukka Tapaninen were re-
elected as members of the Board of Directors. Linda von Schantz was elected as a new member of
the Board of Directors.
Authorised Public Accountants KPMG Oy Ab was re-elected as the Company’s auditor. KPMG Oy
Ab has announced that Petri Kettunen, Authorized Public Accountant, will act as the principal
auditor.
Authorization of the Board of Directors to decide on share issues and on the issue of other
special rights entitling to shares
The General Meeting resolved to authorize the Board of Directors to decide on issuances of new
shares and conveyances of the own shares held by the Company (share issue) either in one or more
instalments. The share issues can be carried out against payment or without consideration on
terms to be determined by the Board of Directors. The authorization also includes the right to issue
special rights referred to in Chapter 10, Section 1 of the Finnish Companies Act, which entitle to the
Company's new shares or own shares held by the Company against consideration. Based on the
authorization, the maximum number of new shares that may be issued and own shares held by the
Company that may be conveyed in share issues or on the basis of special rights is 6,361,317 shares.
The authorization includes the right to deviate from the shareholders’ pre-emptive subscription
right. The authorization is in force until the next Annual General Meeting.
Authorization of the Board of Directors to decide the acquisition of own shares
The General Meeting resolved to authorize the Board of Directors to decide on the acquisition of
the Company’s own shares. Based on the authorization, an aggregate maximum amount of
500,000 own shares may be acquired, either in one or more instalments. The authorization includes
the right to acquire own shares otherwise than in proportion to the existing shareholdings of the
Company’s shareholders, using the Company’s non-restricted shareholders’ equity. The
authorization is in force until the next Annual General Meeting.


Graphics


16 (80)




MANAGEMENT AND AUDITOR
Heikki Veijola served as the CEO of the company from January 1 to December 31, 2024.
The other members of the Executive Management Team were:
• Matti Erkheikki, responsible for QPR’s products, product portfolio vision, and strategy.
• Antti Kivalo, responsible for sales and customer management, starting from September 1,
2024.
• Mika Maliniemi, responsible for software product development, cloud service development
and operations, and customer support services.
• Tero Aspinen, responsible for business operations in the Middle East.
• Teemu Lehto, responsible for the consulting business.
• Sanna Salo, responsible for marketing, communications, and branding.
• Mervi Kerkelä-Hiltunen served as the Chief Financial Officer (CFO) from January 1 to October
1, 2024, and Taru Mäkinen held the position from October 2 to December 31, 2024.
During the financial year, KPMG Oy Ab served as the company's statutory auditor, with Petri
Kettunen, Authorized Public Accountant (KHT), as the principal auditor.


MANAGEMENT’S SHAREHOLDING
As of December 31, 2024, the members of the Board of Directors and the CEO, including their
related parties, held a total of 280,126 shares in QPR Software Plc, representing 1.5% of the
company’s shares and voting rights (December 31, 2023: 1.5%). The shareholding figures include
shares owned personally, by spouses, dependents, and entities under their control.

INTERNAL CONTROL
The objective of the Group's internal control and risk management is to ensure that the Group's
operations are efficient and effective, information is reliable, regulations and policies are followed,
strategic goals are achieved, changes in the market and operating environment are addressed, and
business continuity is secured.
The Board of Directors of QPR Software Plc oversees the adequacy, appropriateness, and
effectiveness of the internal control and risk management within the QPR Group. In accordance
with the Board’s annual calendar, a risk management report covering the risks described under the
Risk Management section is presented to the Board.
The Board evaluates risks based on their potential threat to shareholders. Additionally, the Board
ensures that internal control principles are defined within the company and that the effectiveness
of internal control is continuously monitored.

RISK MANAGEMENT

Graphics


17 (80)



The Group CFO is responsible for coordinating and reporting on the Group’s internal control and
risk management. The Group’s risk management efforts are guided by legal requirements,
shareholder expectations regarding business objectives, and the expectations of customers,
employees, and other key stakeholders.
The objective of QPR’s risk management is to systematically and comprehensively identify risks
related to the company’s operations and ensure they are effectively managed and considered in
decision-making. Risk management is an integral part of the organization’s responsibilities and is
continuously improved by enhancing the company's operational processes.
Risk identification follows the principle of materiality, meaning that risks are monitored based on
their significant impact on the company’s business operations. QPR Software has identified the
following three main risk categories related to its operations: Business risks, Information and
product-related risks, Financial risks.
The company has insured its assets, business interruption risks, and liability risks to mitigate
potential damages.
QPR Software Plc’s management system is certified under the ISO 9001:2015 quality standard,
covering all company operations. This certification is audited annually by an independent external
assessor.

BUSINESS RISKS
QPR Software has identified the following key business risks:
Country Risk
The risk is measured by the loss of revenue from specific countries. The company manages this risk
through continuous market intelligence gathering, geographical and industry diversification, and
careful consideration of geopolitical changes.
Customer Risk
The risk is measured by the customer churn rate for software maintenance services and the
percentage of overdue receivables. Risk is mitigated through strong customer and reseller
relationship management and active monitoring of accounts receivable.
Employee Risks
The risk is measured by employee turnover. It is managed through competent recruitment,
effective leadership, and by providing employees with opportunities for job rotation and training.
Legal and Other Risks
The risk is measured by the total value of ongoing legal disputes in relation to the company’s
revenue. The company mitigates this risk through strong contractual expertise, standard contract
terms, and ethical business practices aligned with company values.
QPR’s country and customer risks are reduced by its business operations spanning over 50
countries, serving both public and private sectors across multiple industries.

Graphics


18 (80)



Operating in international markets inherently involves a reasonable credit loss risk related to
individual business partners. The company seeks to minimize this risk through continuous
monitoring of standard payment terms, receivables, and credit limits. At the end of the reporting
period, 5% (2023: 3%) of trade receivables were overdue by more than 60 days.
Information and Product-Related Risks
QPR Software has identified the following three key information and product-related risks:
Product Risk
The company mitigates this risk by ensuring its product portfolio remains competitive by
differentiating itself through unique product capabilities. Product security is enhanced through
continuous process improvements and automated malware prevention measures.
Intellectual Property (IP) Risk
The company protects its intellectual property rights (IPR) by maintaining the confidentiality of
software source codes, ensuring secure storage, and filing selected patent applications.
In its process mining business, QPR follows an active IPR strategy, leading to the filing of five
separate patent applications in Finland and the USA in 2012 for innovations related to automated
process analysis from event data.
In April 2015, the U.S. Patent and Trademark Office (USPTO) granted a patent based on these
applications. In May 2016, QPR announced that it had received a second patent from the USPTO for
its process mining technology.
The company ensures compliance with intellectual property rights by keeping its contracts up to
date, providing staff training, and maintaining legal expense insurance.
Information Security Risks
QPR Software actively monitors and minimizes information security risks both operationally and
through regular reporting to the Board of Directors. The company implements both administrative
and technical measures to enhance system security.
To reduce information security risks, the company has adopted data and supplier management
models, conducted annual audits of partners, and provided internal security awareness training.
QPR Software has had no significant information security incidents or product management
issues, and there were no major changes in these risks during 2024.
In September 2024, Bureau Veritas conducted a recertification audit of QPR Software’s Information
Security Management System (ISMS) in accordance with the latest ISO 27001:2022 standard.
The ISO 27001 standard sets requirements for establishing, implementing, maintaining, and
continuously improving an Information Security Management System (ISMS). This framework
ensures confidentiality, integrity, and availability of information through risk management
processes, providing stakeholders with assurance that risks are properly managed.
QPR Software’s ISO 27001 certification was granted by Bureau Veritas, an independent and
accredited certification body operating in 140 countries with over 78,000 employees.
Financial Risks

Graphics


19 (80)



QPR Software has identified the following two key financial risks:


Currency Risk
The risk is measured by the percentage of non-euro-denominated receivables and the share of any
single non-euro currency in total receivables. The company manages this risk by using the euro as
the primary billing currency and applying currency hedging in line with its hedging policy.
The company continuously monitors the open positions of its key billing currencies. At the end of
the financial year, 81% (2023: 79%) of the Group’s trade receivables were denominated in euros. The
company had no currency hedging in place at the end of the reporting period.
Liquidity Risk
Liquidity risk refers to the risk of insufficient funding or unusually high financing costs due to a lack
of liquid assets, particularly in cases of sudden business downturns requiring additional financing.
The objective of liquidity risk management is to maintain adequate liquidity and ensure that
sufficient funds are available to support business operations as needed.
QPR maintains liquidity through efficient cash management, deposits, and rapid responses to
changing financial conditions. The risk is measured using cash flow forecasts, which are actively
monitored and supported by efficient debt collection.
The company's financial position is supported by a high proportion of recurring revenue.
Additionally, QPR invoices most of its recurring revenue in advance, strengthening its financial
stability.
As of December 31, 2024, the company’s financial position had improved and was at a satisfactory
level.
The parent company has a EUR 1.5 million long-term credit facility for financing needs. As of year-
end 2024, EUR 1.0 million of this facility had been utilized. The credit agreement includes covenants
based on EBITDA and the equity ratio. EBITDA covenants are tested every six months. The equity
ratio covenant is tested annually based on the year-end balance sheet.

As of December 31, 2024, both EBITDA and the equity ratio exceeded the agreed covenant
thresholds. The credit facility will be repaid in two installments of EUR 500,000, due on January 31,
2025, and January 31, 2026.
To further mitigate liquidity risk, the company has a EUR 500,000 credit limit, which remained
unused as of December 31, 2024.
A more detailed description of the company’s financial risk management for 2024 can be found in
Note 18 of the financial statements.

LEGAL DISPUTES

Graphics


20 (80)



In 2023 and 2024, the company had no legal disputes.

OUTLOOK FOR 2025
Global economic uncertainty and geopolitical tensions continue to pose challenges to the business
environment, making long-term forecasting difficult.
In 2025, as part of its turnaround strategy, the company is shifting its focus to investing in growth
and business development, which will impact profitability during the financial year. Growth will be
driven primarily in the United States, Europe, and the Middle East, supported by the strengthening
of the partner network.
The process mining market is evolving from a product-centric business model towards a platform
economy. QPR ProcessAnalyzer is the only process mining solution designed for the Snowflake AI
Data Cloud environment and is also available as an application on the Snowflake Marketplace. This
opens new growth opportunities for the company, but achieving commercial breakthroughs will
require time and investments.
Due to the nature of the business and long sales cycles, quarterly fluctuations may be significant.
Growth in the first half of the year is expected to be moderate, as some legacy product customer
contracts ended at the turn of the year.
The company forecasts that SaaS revenue will grow, and that the EBITDA will remain positive
despite growth investments.

BOARD OF DIRECTOR’S PROPOSAL ON DIVIDEND DISTRIBUTION
At the end of the 2024 financial year, the parent company’s distributable funds amounted to EUR
436,693. The Board of Directors proposes to the Annual General Meeting that no dividend be
distributed for the financial year 2024.
There have been no material changes in the company’s financial position after the end of the
financial year.

Events After the Reporting Period
There are no events after the reporting period.




Graphics


21 (80)



Group, IFRS



(EUR 1,000)
2024
2023
2022




Net sales
6,614
7,550
7,823




Growth of net sales, %
-12.4
-3.5
-14.4
Operating result
-16
-813
-2,770
% of net sales
-0.2
-10.8
-35.4
Result or loss before tax
-103
-924
-2,864
% of net sales
-1.6
-12.2
-36.6
Result for the period
-82
-924
-2,868
% of net sales
-1.,2
-12.2
-36.7




Return on equity, %
-21.8
-221.5
-625.7
Return on investments, %
-14.3
-42.0
-120.3
Cash and cash equivalents
825
884
17
Net borrowings
577
934
2,262
Equity
401
348
487
Gearing, %
143.9
268.3
464.9
Equity ratio, %
11.9
8.1
7.4
Total balance sheet
5,906
5,869
7,442




Investment in intangible and



tangible assets
753
637
2,324
% of net sales
11.4
8.4
29.7
Research and development expenses
979
1,427
2,674
% of net sales
14.8
18.9
34.2




Personnel average for period
33
57
81
Personnel at the beginning of period
49
85
80
Personnel at the end of period
32
49
85









Graphics


22 (80)




Group, IFRS



(EUR 1,000)
2024
2023
2022




Diluted/Undiluted Earnings per share,
EUR
-0.005
-0.055
-0.202
Equity per share, EUR
0.022
0.020
0.030
Dividend per share *, EUR
0.000
0.000
0.000
Dividend as % of result
0.0
0.0
0.0
Effective dividend yield, %
0.0
0.0
0.0
Price/earnings ratio (P/E)
-177.9
-6.4
-2.8
Development of share price



Average price, EUR
0.51
0.45
1.02
Lowest closing price, EUR
0.33
0.32
0.50
Highest closing price, EUR
0.82
0.75
1.89
Closing price on Dec 31, EUR
0.81
0.33
0.56
Market capitalization on Dec 31,
EUR 1,000
14,514
5,957
8,983




Development of trading volume



Number of shares traded, 1,000 pcs
3,842
3,538
3,324
% of all shares
21.4
19.8
27.7




Number of shares on Dec 31, 1,000 pcs
18,175
18,175
12,445
Average number of shares outstanding
17,918
17,836
11,988
*) Year 2024: The Board of Director's proposal to the Annual General Meeting








Graphics


23 (80)



Definition of Key Indicators

Return on equity (ROE), %:
Result for the financial year x 100
Shareholders' equity (average)

Return on investment (ROI), %:
(Result before taxes + interest and other financial expenses) x 100
Balance sheet total - non-interest bearing liabilities (average for the financial
year)

Gearing:
Interest-bearing liabilities - cash and cash equivalents

Gearing, %:
(Interest-bearing liabilities - cash and cash equivalents) x 100
Total equity

Equity ratio, %:
Total equity x 100
Balance sheet total - advances received

Earnings per share, euro:
Result for financial year
Weighted average number of shares outstanding during the financial year

Equity per share, euro:
Equity attributable to shareholders of the parent company
Number of shares outstanding at the end of the financial year

Dividend per share, euro:
Total dividend paid
Number of shares outstanding at the end of the financial year

Dividend per Result, %:
Dividend per share x 100
Earnings per share

Effective dividend yield, %:
Dividend per share x 100
Share price at December, 31st

Price/earnings ratio (P/E):
Share price at December, 31st
Earnings per share


Graphics


24 (80)



Share price at December, 31st
Earnings per share

Market capitalization:
Total number of shares outstanding x share price at the end of the financial year

Turnover of shares, % of all shares:
Number of shares traded x 100
Average number of shares outstanding during the year





















Graphics


25 (80)




QPR SOFTWARE PLC
FINANCIAL STATEMENTS
2024














QPR Software Plc Annual Financial Report (AFR) ESEF tagging is officially published in
Finnish. QPR Software Plc has decided to provide voluntarily non-official version
translated in English in this ESEF tagged document.



Graphics


26 (80)



Consolidated Comprehensive
Income Statement, IFRS







(EUR 1,000)
Note
2024
2023




Net sales
3
6,614
7,550
Other operating income
4
132
1




Materials and services*
5
1,026
1,241
Employee benefit expenses
6,7
3,467
5,287
Depreciation and amortization
8
1,036
995
Other operating expenses
9
1,234
840
Total expenses

6,763
8,363




Operating Result

-16
-813




Financial income
10
16
1
Financial expenses
10
-103
-112
Financial items, net

-87
-111




Result before tax

-103
-924




Income taxes
11
21
0




Result for the financial year

-82
-924




Other items in comprehensive income that may



be reclassified subsequently to profit or loss:



Exchange differences on translating foreign
operations

-2
-1
Other items in comprehensive income, net of tax

-2
-1




Total comprehensive income for the financial year

-84
-925




Earnings per share, EUR



Undiluted, EUR
12
-0.005
-0.055
Diluted, EUR
12
-0.005
-0.055




*The company has reported the production costs of the cloud platform within the materials and
services expense category starting from the financial year 2024. The figures for the comparative period
have been presented according to both reported and 2024 cost groupings.


Graphics


27 (80)



Consolidated Balance Sheet, IFRS



(EUR 1,000)
Note
2024
2023
ASSETS



Non-current assets



Capitalized product development expenses
13
1,603
2,217
Other intangible assets
13
38
28
Goodwill
14
358
358
Tangible assets
15
20
81
Other investments
16
5
5
Right-of-use assets
15
377
318
Deferred tax assets
17
325
273
Total non-current assets

2,726
3,279




Current assets



Trade and other receivables
18
2,355
1,706
Cash and cash equivalents
19
825
884
Total current assets

3,180
2,590
Total assets

5,906
5,869




EQUITY AND LIABILITIES



Equity



Share capital
21
80
80
Other funds

21
21
Treasury shares

-244
-348
Translation difference

-65
-67
Invested non-restricted equity fund

4,925
4,925
Retained earnings

-4,316
-4,263
Equity attributable to shareholders of the Parent
company

401
348




Non-current liabilities



Interest-bearing lease liabilities
22
372
192
Interest-bearing liabilities
22
500
1,000
Total non-current liabilities

872
1,192




Current liabilities



Interest-bearing lease liabilities
22
29
126
Trade and other payables
23
4,104
3,703
Interest-bearing liabilities
22
500
500
Total current liabilities

4,633
4,329
Total liabilities

5,505
5,521
Total equity and liabilities

5,906
5,869







Graphics
28 (80)
Consolidated Cash Flow Statement, IFRS
(EUR 1,000)
Note
2024
2023
Cash flow from operating activities
Result for the period
-82
-924
Adjustments for the result
Depreciation
1,036
995
Other adjustments
8
220
83
Changes in working capital:
Increase (-)/decrease (+) in short-term non-interest bearing
receivables
-649
1,872
Increase (+)/decrease (-) in short-term non-interest bearing
liabilities
377
-1,051
Interest expense and other financial expenses paid
-78
-107
Taxes paid
-18
-19
Net cash flow from operating activities
806
849
Cash flow from investing activities
Capitalized development expenses
-331
-619
Acquisition of other intangible assets
-
-2
Proceeds from sales of tangible and intangible assets
6
-
Net cash flow from in investing activities
-325
-620
Cash flow from financing activities
Proceeds from borrowings
0
1,500
Repayments of borrowings
22
-500
-1,500
Payment of lease liabilities
-39
-121
Share issue, net
21
-
760
Net cash used in financing activities
-539
639
Change in cash and cash equivalents
-58
868
Cash and cash equivalents at the beginning of year
884
17
Effect of exchange rate differences
-1
0
Cash and cash equivalents at the end of year
19
825
884


Graphics
29 (80)
Consolidated statement of changes
in equity, IFRS
Share
capital
Other
funds
Translation
differences
Treasury
shares
Invested
unrestricted
equity fund
Retained
earnings
Equity
attributable
to
shareholders
of the
parent
company
Equity Jan 1, 2023
1,359
21
-66
-406
2,943
-3,364
487
Total comprehensive
income for the
period
Profit for the period
-924
-924
Translation
differences
-1
-1
Total comprehensive
income for the
period
0
0
-1
0
0
-924
-925
Transactions with
owners of the
Company
Disposal of own
shares
58
-10
48
Reduction of share
capital
-1,279
1,279
0
Stock option scheme
36
36
Share issue, net
703
703
Transactions with
owners of the
Company
-1,279
0
0
58
1,982
26
787
Equity Dec 31, 2023
80
21
-67
-348
4,925
-4,263
348
Equity Jan 1, 2024
80
21
-67
-348
4,925
-4,263
348
Total comprehensive
income for the
period
Profit for the period
-82
-82
Translation
differences
2
-9
-7
Total comprehensive
income for the
period
0
0
2
0
0
-91
-89
Transactions with
owners of the
Company
Disposal of own
shares
103
-55
48
Reduction of share
capital
Stock option scheme
93
93

Graphics
30 (80)
Share issue, net
0
Transactions with
owners of the
Company
0
0
0
103
0
38
141
Equity Dec 31, 2024
80
21
-65
-244
4,925
-4,316
401


Graphics


31 (80)



NOTES TO FINANCIAL STATEMENTS


Company Information
QPR offers services and software tools for developing business processes and enterprise architecture. The
Group’s parent company, QPR Software Plc (company ID 0832693-7), is a public limited liability company
incorporated in Finland. The parent company is domiciled in Helsinki, Finland, and its registered office is
located at Keilaranta 1, 02150 Espoo, Finland.

The shares of the parent company, QPR Software Plc, have been listed on the Helsinki Stock Exchange since
2002.
A copy of the Consolidated Financial Statements is available on the Internet at www.qpr.com or at QPR
Software Plc, at Keilaranta 1, 02150 Espoo, Finland.
QPR Software Plc’s Board of Directors have approved the financial statements for publication on February 14,
2025. Shareholders have the right to approve or reject financial statements in the Annual General Meeting or
decide to revise them. The Annual General Meeting has also right to make a decision to amend the financial
statements.






NEW AND AMENDED STANDARDS AND INTERPRETATIONS ADOPTED IN 2024
Classification of Liabilities as Current or Non-current – Amendments to IAS 1 Presentation of Financial
Statements (effective for financial years beginning on or after January 1, 2024) The amendments are to
promote consistency in application and clarify the requirements for determining if a liability is current or non-
current. The amendments specify that covenants to be complied with after the reporting date do not affect
the classification of debt as current or non-current at the reporting date. The change in standard might have
an impact on the information presented in future financial years.


Consolidation principles
The Consolidated Financial Statements include the parent company, QPR Software Plc, and the subsidiaries it
controls. The parent company's control is based on the ownership of the entire share capital or a majority of
shares in the case of subsidiaries, as well as 100% voting rights. The Company did not own shares in joint
ventures or associated companies in 2024 and 2023.
Subsidiaries acquired during the financial period are consolidated from the date on which control is obtained,
and divestments are included until the date on which control ceases. Intragroup shareholdings are eliminated
using the acquisition cost method. Intercompany business transactions, receivables, liabilities, unrealized
profits, as well as intragroup profit distribution, are eliminated in the Consolidated Financial Statements. The
profit for the financial year applicable to non-controlling interests is presented separately in the consolidated
comprehensive income statement, and the share of the non-controlling interest in shareholders’ equity is
presented separately in the consolidated balance sheet. The Group’s subsidiaries did not have any non-
controlling interests in 2024 and 2023.


Continuity of operations
The Consolidated Financial Statements have been prepared in accordance with the principle of continuity
taking into account the active measures implemented, business forecast, and the long-term refinancing
agreement at the beginning of 2023. Additional information in the Note 28.

Foreign currency translation
The functional currency of foreign subsidiaries has been determined to be the local bookkeeping currency.



Graphics
32 (80)



Transactions denominated in foreign currency have been translated into the group reporting currency using
the exchange rate valid on the transaction date. Monetary items have been converted into the Group
reporting currency using the exchange rate on the closing date, and non-monetary items using the exchange
rate on the transaction date. The exchange gains and losses from business operations are included in
operating profit, and the exchange gains and losses from financial assets or liabilities are included in financial
income and expenses.
The income and expense items in the comprehensive income statements of foreign subsidiaries are
translated into Euro using the average exchange rates for the year, and the balance sheets are translated
using the exchange rates on the balance sheet date. Translation differences arising from the elimination of
foreign subsidiaries and the translation of equity items accumulated after the acquisition are entered into
other comprehensive income items. The foreign currency gains and losses from monetary items which are
part of the net investment in a foreign unit are recognized in other comprehensive income items.

Revenue recognition
Net sales include the normal sales income from the Group’s business operations, deducted sales-related taxes
and discounts granted. When calculating net sales, they are adjusted to account for exchange rate differences.
Revenue is recognized when (or as) the control of goods or services are transferred to a customer either over
time or at a point in time.
The consolidated net sales consist of software license sales, software maintenance services, cloud services
(SaaS) and consulting. In relation to its resellers, the Company acts as a principal and records in its net sales
the revenue from the software sales of the resellers to the end customers, and records in its costs the reseller
commission.
Software license revenue is recognized at a point in time, when (or as) a company transfers control of license
or user rights to a customer.
Limited term license performance obligations are license and maintenance, and revenue is recognized as the
performance obligation if fulfilled, either at a point in time or over time, during the agreement period.
Long-term software license contracts agreed for indefinite duration have the performance obligation for
licenses and maintenance. The license part of the revenue is recognized at a point in time, in the beginning of
each invoicing period, however not earlier than delivery is performed. The maintenance part as well as cloud
services in total are recognized over time, evenly during the contract period.
Software maintenance services covering software updates and customer support are recognized over time,
evenly during the agreement period.
Cloud services (SaaS) in totality are recognized over time, as the performance obligation is the service
rendered over time.
Revenues from consulting services are recognized as services are rendered, when (or as) control of the services
has been transferred to the customer.
The Group uses payment terms typical for each market, including domestic terms, which are typically shorter
than international terms.

Advance payments
Licenses and maintenance fees for long-term, indefinite-term software licenses (Renewable Licenses),
software maintenance revenues, as well as revenues from cloud services (SaaS services) are generally invoiced
before the commencement of the performance obligation. The portion of the performance obligation is
recorded in the balance sheet as deferred income liabilities, and, correspondingly, either as accounts
receivable or, upon the fulfillment of the performance, into the bank account.



Graphics
33 (80)






Other operating income
Other operating income includes income that is not related to the Group core business. Government grants
are recorded in other operating income, except when they are related to investments, in which case they are
deducted from the acquisition cost of the asset.

Research and development expenditure
Research costs are expensed as incurred. Expenses related to the introduction of new technology, or the
development of a new product are capitalized and amortized over the useful life of 4 years. When determining
the duration of useful economic life, the technology’s eventual obsolescence and the product’s typical life
cycle are considered. Amortization begins when the product becomes commercially viable. Maintenance costs
and minor improvements to existing products are expensed. Grants received for product development are
recognized in the income statement for the periods in which the corresponding expenses are incurred.

Pension plans
The Group’s pension scheme is a defined contribution plan managed by a pension insurance company. The
expenses are recognized in the comprehensive income statement in the financial period that the contribution
relates to. The Group does not have a legal or constructive liability to pay additional contributions in case of
non-performance by the pension insurance company.

Share-based payments
The Group has adopted an option plan for key persons as of beginning of the year 2019 and expanded it with a
new plans in 2022, 2023 and 2024. In the Group incentive plan payments are made in the form of equity
instruments. The benefits granted under the plans are recognized at fair value on the date on which they were
granted and entered as costs evenly throughout the period during which they were earned. The effect of the
plans on profit or loss is presented under the costs of employee benefits.
The cost determined on the date on which the options were granted is based on the Group estimate of the
number of options for which rights are presumed to arise at the end of the incentive earning period. The
Group updates the presumption of the final number of options on the final day of every reporting period.
Changes in estimates are treated through profit or loss.
The fair value of the option plan is defined based on the Black-Scholes pricing model. Terms that are not
market based, such as profitability and specific growth targets, are not taken into consideration when
determining the fair value of options. Instead, they affect the estimate of the final number of options. When
option rights are exercised, the assets obtained from share subscriptions are entered into the invested
unrestricted equity fund in accordance with the terms of the plan.

Operating profit
IAS 1 “Presentation of Financial Statements” does not define the concept of operating profit. The Group uses
the following definition of operating profit: operating profit is the sum of net sales and other operating
income, less the cost of materials and services, expenses for employee benefits, other operating expenses, as
well as depreciation, amortization and impairment losses of tangible and intangible assets. Exchange rate
differences arising from working capital items are included in operating profit, whereas exchange rate
differences arising from financial assets and liabilities are included in financial income and expenses.



Impairment
At each annual closing, the Group reviews asset items for any indication of impairment losses. If there are such
indications, the amount recoverable from the said asset item is assessed. The recoverable amount of tangible
and intangible assets is the higher of the asset item’s fair value less the cost arising from disposal and its value
in use. The recoverable amount of financial assets is either the fair value or the present value of expected
future cash flows discounted at the original effective interest rate. An impairment loss is recognized in the
comprehensive income statement when the carrying amount is greater than the recoverable amount.





Graphics
34 (80)








Goodwill is not amortized but its recoverable amount is estimated annually or more frequently if
circumstances indicate that the value may be impaired. Such an estimate is prepared at least at each annual
closing. For such purposes, goodwill is allocated to cash-generating units. An impairment loss is recognized in
the consolidated comprehensive income statement, if the impairment test shows that the carrying amount of
goodwill exceeds its recoverable amount. In this case the goodwill is recorded at its recoverable amount. After
the initial recognition, goodwill is valued at original acquisition cost, less impairment losses recognized.
Impairment losses on goodwill cannot be reversed.






Income taxes
The tax expense in the comprehensive income statement consists of tax based on taxable income for the
financial year and deferred tax. Tax based on taxable income for the financial year is calculated on the basis of
taxable income and the tax rate valid in each country. Income taxes are charged to income, except when they
are related to items recorded in equity or other items in comprehensive income, in which case the tax expense
is adjusted to such items.
Deferred taxes are calculated based on temporary differences between the book value and tax value of an
asset or liability item. Deferred taxes are calculated at tax rates enacted by the balance sheet date.
A deferred tax asset is recognized in the amount that it is probable, in accordance with IAS 12, that future
taxable income will be generated against which the temporary difference can be utilized. Deferred tax
liabilities are recognized in the balance sheet in full.




Intangible assets
Goodwill arising from business acquisitions represents the excess of the cost of an acquisition, the amount of
non-controlling interests, and previously owned equity interests, over the fair value of the net assets of the
acquired company. Goodwill is valued at the original acquisition cost minus impairment losses.
Other intangible assets include, for example, patents and IT systems. They are amortized on a straight-line
basis over their useful life, which is 2 – 5 years.



Tangible assets
The balance sheet values of tangible assets are based on original acquisition cost minus accumulated
depreciation and impairment losses. Depreciation is calculated using the straight-line method and is based on
the estimated useful life of the asset.
The Group didn’t capitalize any borrowing costs in 2023 and 2024.
Useful lifetimes of tangible assets:
Machinery and equipment 3 – 7 years
IT machinery and equipment 2 – 5 years



Lease agreements
The Group has adopted the IFRS 16 standard on leases. According to the standard, a contract is or contains a
lease if the Group has a right to control the use of an identified asset for a certain period of time in exchange
for consideration. When determining the non-cancellable period, the Group assesses the probability of
exercising extension and termination options by considering all relevant facts and circumstances.
Lease payments are divided into liabilities and financial expenses. Financial expenses are recognized in the
income statement for the lease period. The right-of-use asset is depreciated using the straight-line method
over the asset’s useful life or lease term, if shorter than useful life. Lease liabilities are discounted at the
average loan interest rate of the year.




Graphics
35 (80)







When future lease payments are revised due to changes in an index rate or the terms of the lease, the right-of-
use asset and the corresponding lease liability are revalued to reflect these changes.
The group applies a practical expedient, under which the company does not recognize lease agreements with
a lease term of up to 12 months at the commencement date (short-term lease) on the balance sheet. Instead,
the company recognizes the lease payments related to short-term leases as expenses on a straight-line basis
over the lease term.
The Group primarily leases premises for office and warehouse use. Lease agreements are typically made either
as fixed-term contracts or indefinite-term contracts.






Financial assets and liabilities
The Group’s financial assets are classified into the following measurement categories: financial assets at fair
value through profit or loss and financial assets at amortized cost. The classification of financial assets is based
on the purpose of the acquisition (business model for managing the asset) that is determined upon initial
recognition. Transaction costs are included in the original carrying amount of a financial asset when the item
is not measured at fair value through profit or loss. Purchases and sales of financial assets are recorded on the
trade date. Items recognized at amortized cost comprise trade receivables.

Financial liabilities are initially recognized at fair value minus the transaction costs that are directly attributable
to the acquisition or issue of financial liability. Subsequently financial liabilities, except for derivative liabilities,
are measured at amortized cost using the effective interest rate (EIR) method. Financial liabilities may include
both non-current and current liabilities and they can be interest-bearing or non-interest-bearing.

Financial assets and liabilities measured at fair value are presented in accordance with the hierarchy levels
based on fair value measurement. Levels 1, 2 and 3 are based on the source of information used in the
measurement. On level 1, fair values are based on public quotes. On level 2, fair values are based on quoted
market rates and prices, discounted cash flows, and valuation models (options). For assets and liabilities
classified on level 3, there is no reliable market information source, and therefore, the fair values of these
instruments are not based on market information.

To measure expected credit losses of trade receivables from customers, the Group uses a simplified approach.
According to the approach the loss allowance is measured based on an allowance matrix and recognized at
an amount equal to lifetime expected credit losses. Expected credit losses are measured based on historical
information on previous credit losses, and also the available information on future economic conditions is
included in the model.


Derivative contracts
Derivative contracts are initially recognized at fair value on the date on which the Group becomes party to the
contract and are subsequently measured at fair value. The Group has no derivative contracts in 2023 and 2024.

Cash and cash equivalents
Cash and cash equivalents include cash and cash equivalents which are highly liquid and have a maturity of
no more than three months from the date of acquisition.

Treasury shares
The repurchase of our own shares as well as the related direct costs are recorded as deductions in equity.

Provisions
A provision is recognized when the Group has a legal or constructive obligation as a result of an action, the
outflow of resources required to settle the obligation is probable, and a reliable estimate of the amount can be
made.



Graphics
36 (80)



A restructuring provision is recognized when a detailed and appropriate plan has been prepared and the
company has begun to implement the plan or has announced that it will do so. Restructuring provisions are
based on the management’s best estimate of the expenses to be incurred, e.g., from employee termination
payments.
A provision for a loss-making agreement is recognized when unavoidable expenditure required to fulfill the
obligations exceeds the benefits obtainable from the agreement.

Accounting principles that require management consideration, and essential factors of uncertainty
related to management estimates
The preparation of the financial statements in accordance with IFRS standards requires management to make
estimates and assumptions that affect the amounts of assets and liabilities at the date of the balance sheet, as
well as the amounts of income and expenses for the reporting period and future periods. In addition,
professional judgment is required in applying the accounting principles used in the preparation of the
financial statements. Since the estimates and assumptions related to the determination of the carrying
amounts of assets and liabilities are based on management's views at the date of the financial statements,
expected outcomes, and other assumptions that were available when preparing these consolidated financial
statements and are considered appropriate in the circumstances. Estimates involve risks and uncertainties,
and actual outcomes may differ from the estimates and assumptions made.
In estimates requiring management judgment, the management has taken into account general
uncertainties such as geopolitical tensions, inflation, and uncertainties affecting the overall economic
development in the valuation. Uncertainties may affect revenue development, the discount rate used, and the
evolution of the company's cost structure. Additionally, uncertainties may impact the company's customers'
payment behavior, as well as potential misjudgments in the capitalization of research and development
expenses resulting from technology choices.
Estimates are reviewed if there are changes in circumstances or if new information or experience is obtained.
Since estimates inherently involve various degrees of uncertainty, the actual outcome may differ from the
estimated, leading to adjustments in the carrying amounts of assets and liabilities.
Learn more about the key areas which require management consideration:
Share-based payments and option schemes (Note 7)
Product development expenditure (Note 9)
Goodwill (Note 14)
Deferred tax (Note 17)
Trade receivables (Note 18)
Leases (Note 27)
Financial risk management (Note 28)


Adoption of new or revised IFRS standards
The Group has not yet adopted the following already published new or amended standards and
interpretations. The Group will adopt them immediately after the standard or interpretation is effective or,
when applicable, at the beginning of the next financial year. (*= On December 31, 2024, the standard in
question was not yet approved for adoption in EU)
Annual Improvements to IFRS Accounting Standards—Volume 11* (effective for financial years beginning on
or after 1 January 2026, early application is permitted). Management estimates the impact of individual
standards on the Group’s reporting.




Graphics
37 (80)


IFRS 18 Presentation and Disclosure in Financial Statements* (effective for financial years beginning on or
after 1 January 2027, early application is permitted). The change in the standard will affect the presentation of
Group financial statement.
Other new and revised standards and interpretations are not expected to influence the Consolidated Financial
Statements when they become effective.



2. Segment information
QPR Software reports on one operating segment: Operational development of organizations. In addition to
this, the Company reports net sales from products and services as follows: Software licenses, Renewable
software licenses, Software maintenance services, Cloud services, and Consulting services. Recurring revenue
reported by the Group consists of software maintenance services and cloud services as well as of renewable
software licenses. They are based on long-term, indefinite, or multiyear contracts, and are generally invoiced
annually in advance.
The accounting and valuation principles for the segments are the same as in the Consolidated Financial
Statements.
Net sales by Operating segment Group, IFRS
(EUR 1,000)
2024 2023
Operational development of
organizations 6,614 7,550
Total net sales 6,614 7,550

3. Net sales
Net Sales by Product Group
The Group’s net sales derive from software and consulting businesses are broken down as follows:
Group, IFRS
(EUR 1,000) Change
2024 2023 %
Software licenses 926 485 91 %
Renewable software licenses 420 504 -17 %
Software maintenance services 1,717 1,720 0 %
Cloud services 2,721 2,371 15 %
Consulting services 830 2,469 -66 %
Total net sales 6,614 7,550 -12 %
Net Sales by Geographic area


Graphics


38 (80)



Net Sales by Geographic area

The geographical areas reported are Finland, the rest of Europe including Turkey, and the rest of the world.
Net sales are reported according to the customer’s headquarter location.


Group, IFRS
(EUR 1,000) Change,
2024 2023 %
Finland 2,579 3,499 -26 %
Europe incl. Turkey 2,656 3,128 -15 %
Rest of the world 1,379 923 49 %
Total net sales 6,614 7,550 -12 %





Balance sheet items based on customer agreements are presented in Note 22.
























Graphics
39 (80)

4. Other operating income
Group, IFRS
(EUR 1,000)
2024 2023
Public grants 132 -
Other items - 1
Total 132 1


5. Materials and services
Group, IFRS
(EUR 1,000)
2024 2023
Materials and services* 1,026 1,241
*The company has reported the production
costs of the cloud platform within the
materials and services expense category
starting from the financial year 2024. The
figures for the comparative period has been
presented according to both reported and
2024 cost groupings.
Materials and services include mainly
commissions and localization fees charged
by the reseller network, as well as
consultancy subcontracting.


6. Employees and related parties
Group, IFRS
(EUR 1,000)
2024 2023
Wages and salaries 2,955 4,425
Pension expenses - defined contribution
plans 558 741
Other personnel expenses 47 121
Total 3,467 5,287
Average number of employees during the
year (persons) 33 57



Graphics


40 (80)







Related parties

The Group and the parent company’s related parties include members of the parent company’s Board of
Directors and the Executive Management Team, including the Chief Executive Officer, their spouses, domestic
partners, children and dependents, spouses’ or domestic partners’ children and dependents, as well as entities
controlled by any such related party.

The Group does not have any loans, commitments or guarantees granted to or received from related parties.
The Group has not had business transactions with related parties in 2024 and 2023.

The list of Group companies has been presented in Note 16.

Salaries, bonuses, fringe benefits and change in vacation bonus and bonus accruals
for management

The Group has determined management to include members of the Board of Directors and the Executive
Management Team, including the Chief Executive Officer.

Group, IFRS
(EUR 1,000)
2024 2023
Salaries and other short-term benefits:
Members of the Board of Directors 120 120
Chief Executive Officer Jussi Vasama - 56
Chief Executive Officer Heikki Veijola 181 163
Executive Management Team 1,029 1,041
Total 1,330 1,380





Bonuses of the Parent company’s Board of Directors

(EUR 1,000)
2024 2023
Board fees by member:
Ervi Pertti, Chairman of the Board 45 45
Heikkonen Matti - 25
Koskela Antti 25 25
von Schantz Linda 25 -
Tapaninen Jukka 25 25
Total 120 120




QPR Software Plc's Annual General meeting held on May 15
th
, 2024, resolved that EUR 45,000 annual fee (2023:
EUR 45,000) shall be paid for the Chairman of the Board of Directors and EUR 25,000 (2023: EUR 25,000)



Graphics
41 (80)

annual fee shall be paid for the other members of the Board of Directors. Approximately 40 % of the
remuneration to the members of the Board of Directors will be paid in the company’s shares and 60% in cash,
and the shares will be granted as soon as it is possible after the next Annual General Meeting when insider
rules allow it. No separate meeting fees are paid.
The Company does not have any exceptional pension arrangements for the CEO. Pension expenses accrued,
based on the CEO's salary and bonuses and the Finnish pension legislation, amounted to EUR 32 thousand in
2024 (2023: EUR 39 thousand).
The period of notice for the CEO is four (4) months. Compensation on termination is equivalent to three (3)
month's salary. Other members of the Group's Executive Management Team do not enjoy special benefits
related to termination of their contract.
In 2024, the maximum annual bonus of Executive Management Team, including the CEO, was 50% of the
annual base salary. The bonus scheme for members of the Executive Management Team was based on a set
of KPI's including development of the Group net sales, new sales and other non-financial KPI's 2023. For
financial year 2024 about 110 thousand euros (2023: EUR 44 thousand) will be paid to the executive
management team, including the CEO.


7. Share based payments
Option scheme
QPR Software is operating with 2022, 2023 and 2024 stock option plans intending to use these as part of the
Group's incentive and commitment program for the key employees. The purpose of the stock options is to
encourage the key employees to work on a long-term basis to increase the shareholder value and retain the
key employees at the company. The stock options are issued gratuitously.
The subscription period for the previous stock options marked 2019 B was January 1 - January 31, 2024, and no
shares were exercised in the scheme.
The number of shares for the stock option plan 2022, subscribed by exercising stock option corresponds to a
maximum of 1.9% of the Company’s shares and votes after possible share subscriptions, if new shares are
issued in the share subscription. As a result of the share subscriptions with stock options, the number of the
Company’s shares may increase by a maximum of 489,542 shares, if new shares are issued in the share
subscription.
The number of shares for the stock option plan 2023, subscribed by exercising stock options corresponds to a
maximum of 5.2% of the Company’s shares and votes after possible share subscriptions, if new shares are
issued in the share subscription. As a result of the share subscriptions with stock options, the number of the
Company’s shares may increase by a maximum of 1,000,000 shares if new shares are issued in the share
subscription.
The number of shares for the stock option plan 2024A, subscribed by exercising stock option corresponds to a
maximum of 4.0% of the Company’s shares and votes after possible share subscriptions, if new shares are
issued in the share subscription. As a result of the share subscriptions with stock options, the number of the
Company’s shares may increase by a maximum of 720,00 shares.
The amount of 540 000 stock options is marked with the symbol 2024 B and 540 000 with the symbol 2024 C.
The share subscription period with the Stock Options 2024 B shall be between 9 September 2028 and 8
September 2030. The share subscription period with the Stock Options 2024 C shall be between 9 September
2029 and 8 September 2031. The theoretical market value of the stock options 2024 B and stock options 2024
C shall be determined at the grant date of the stock options.
The terms and conditions of the stock options 2022, 2023 and 2024 are available on the company’s webpage:
www.qpr.com.


Graphics
42 (80)
Share-based payment arrangements granted
2022 2023 2024
15.6.2025- 6.9.2026- 10.9.2024-
Subscription period 31.5.2027 6.9.2028 9.9.2029
Share subscription price 0.85 0.42 0.59
Stock options outstanding at the end of the period, pcs 489.542 1.000.000 720.000
Estimated expense of share option program, EUR 1,000 88 150 131

8. Depreciation and amortization
Group, IFRS
(EUR 1,000)
2024 2023
Intangible assets 934 787
Tangible assets
Machinery and equipment 55 90
Right-of-use assets, buildings 47 118
Total 1,036 995
Write-downs of EUR 2 thousand (EUR 0) have been made on assets in 2024.


9. Other operating expenses


Other operating expenses by expense category
Group, IFRS
(EUR 1,000)
2024 2023
Non-statutory indirect employee costs 74 93
Premise expenses 59 52
Travel expenses 49 14
Marketing and other sales promotion 200 223
Computers and software 276 615
External services 758 258
Doubtful receivables and bad debts -23 2
Capitalized product development expenses -331 -619
Other expenses 173 201
Total 1,234 840
Auditors’ remunerations
Auditing 66 73
Other services 3 2
Total 69 75





Graphics
43 (80)

Product development expenses incurred during the year
Expenses recognized in profit or loss 979 809
Capitalized expenses 331 619
Total 1,310 1,428
Product development expenses mainly consist of external services and personnel expenses. Recognized
expenses do not include amortization. The amortization of capitalized product development expenses is
presented in Note 13.




10. Financial income and expenses
Recognized in profit or loss
Group, IFRS
(EUR 1,000)
2024 2023
Interest income from loans and other receivables 5 1
Other financial income - -
Exchange rate differences 11 0
Financial income total 16 1
Interest expenses of the financial liabilities measured at
amortized cost -36 -89
Other financial expenses -50 -9
Exchange rate differences -17 -14
Financial expenses total -103 -112
Financial income and expenses, net -87 -111
Exchange rate differences in profit and loss
Exchange rate differences included in net sales 9 -40
Exchange rate gains in financial income 11 0
Exchange rate losses in financial expenses -17 -14
Total 2 -54




Graphics
44 (80)

11. Income taxes
Recognized in profit or loss
Group, IFRS
(EUR 1,000)
2024 2023
Current tax expense -18 0
Tax expense from previous years -13 0
Deferred tax 52 0
Total 21 0
Reconciliation of tax rate
Group, IFRS
(EUR 1,000)
2024 2023
Result before tax -103 -924
Income tax calculated at the Finnish
corporate tax rate 21 185
Effect of different tax rates in foreign subsidiaries -3 -1
Effect of options and IFRS 16 -23 6
Other items - -11
Withholding tax - 19
Deferred tax of right issue costs - 19
Recognition of previously unrecognized tax loss 55 -
Tax effect of deductable temporary expense 11 -
Tax expense from previous years -13 -
Recognition of new deferred tax asset 152 -
Unrecognized deferred tax asset -179 -217
Tax expense in the comprehensive income statement 21 0



Graphics


45 (80)



12. Earnings per share


Undiluted earnings per share are calculated by dividing total comprehensive income attributable to
shareholders of the parent company by the weighted average number of shares outstanding during the
financial year.

Group, IFRS
(EUR 1,000)
2024 2023
Total comprehensive income attributable to shareholders
of the parent company (EUR thousand) -82 -924
Number of shares outstanding (1,000 pcs) 17,836 16,678
Earnings per share (EUR/share)
Undiluted and diluted -0.005 -0.055

















The Group are operating stock option plans 2022, 2023 and 2024. In 2024 and 2023, the stock option scheme
did not have a dilutive effect. Total outstanding shares on December 31,2024 were 17,835,721.



















Graphics


46 (80)




13. Intangible assets




Other Capitalized
Computer intangible product
Group (EUR 1,000), IFRS software assets development Total
Book value Jan 1, 2023 3 28 2,380 2,411
Increases and decreases 0 2 619 620
Amortization for the financial year -2 -3 -782 -787
Acquisition cost Dec 31, 2023 1,064 2,632 10,318 14,014
Accumulated. amortization and write-downs
Dec 31, 2023 -1,063 -2,605 -8,101 -11,769
Book value Dec 31, 2023 1 29 2,217 2,245
Book value Jan 1, 2024 1 29 2,217 2,245
Increases and transfers 0 0 331 331
Amortization for the financial year -1 -16 -919 -935
Acquisition cost Dec 31, 2024 1,064 2,632 10,649 14,345
Accumulated. amortization and write-downs
Dec 31, 2024 -1,064 -2,621 -9,020 -12,705
Book value Dec 31, 2024 0 13 1,629 1,641

Capitalized product development expenses were EUR 341 thousand (2023: EUR 2,181 thousand). Unfinished
product development projects EUR 26 thousand (2023: EUR 36 thousand), which have not yet commercialized
and respectively started depreciations, were recognized in the balance sheet at the end of the financial year.
Capitalized product development expenses are tested for impairment at the end of each financial year or at
any event if there is indication of impairment on any asset.

The capitalized product development expenses have been performed for impairment test December 31, 2024,
based on which the amount to be generated from the cash-generating unit is determined based on value-in-
use calculations.

The impairment test calculations are prepared following the discounted cash flow method using
the management approved estimates driven from budget for the following year and subsequent
development derived from the strategic plans. The terminal year value has been defined based on
the long-term strategic plans taking average cash flows of the period. Cash flows beyond the 5-year
period are calculated using the terminal value method. The terminal growth rate of 2.0% percent
(1.0%) used in projections is based on management’s assessment on conservative long-term
growth. Key driver for the valuation is the revenue growth based on the Group’s performance and
future strategic growth plans, market position as well as the potential in key markets. The applied
discount rate is the weighted average pre-tax cost of capital (WACC). The components of the
WACC are risk-free rate, market risk premium, company specific factor, and industry specific beta,
cost of debt and debt/equity ratio. The WACC of 10.24% percent (11.36 %) has been used in the
calculations. As a result of the impairment test, no impairment loss for the CGU was recognized for
the financial period end December 31,2024. Based on testing performed in 2024, no need was
found for recognizing impairment losses: a clear margin was left for each tested unit.









Graphics
47 (80)

Accounting estimates and management's judgements
The management uses significant estimates and judgement when determining whether there are indications
of impairment of R&D assets. Management judgement has also been used when defining the amount of cash
generating units and taken into account software business area and related consulting recoverable amounts.
The cash flow projections are based on budgets and financial estimates approved by management covering a
5-year period. Cash flow forecasts are based on QPR’s existing business structure, actual results and the
management’s best estimates on future sales, cost and EBITDA development, general market conditions,
growth potential on the market as well as economical uncertainties. Management has considered in the
estimates the impact of decided structural changes in all business areas to improve performance.
Management tests the impacts of changes in significant estimates used in forecasts by sensitivity analyses.
According to Group level sensitivity analyses for R&D assets, there will be need for write-downs, if the growth
rate of net sales decreases of expected average growth rate by 38 percentage, regardless of possible cost
savings. Expected changes of discount rate do not have impact to the impairment testing results.





14. Goodwill
Group (EUR 1,000) 2024 2023
Acquisition cost Jan 1 358 358
Acquisition cost Dec 31 358 358
Book value Dec 31 358 358
QPR's goodwill arises from the acquisition of Nobultec Ltd in 2011 and it has been allocated to the group
software business (previously to the Process Mining business unit).
QPR has made goodwill impairment test for the reporting period at 31.12.2024. The recoverable amount from
the cash generating unit is determined based on value in-use calculations. The calculations are prepared
following the discounted cash flow method using the management approved estimates driven from budget
for the following year and subsequent development derived from the strategic plans. Terminal year value has
been defined based on the long-term strategic plans. Cash flows beyond the 5-year period are calculated
using the terminal value method. The terminal growth rate of 2.0% percent (1.0%) used in projections is based
on management’s assessment on conservative long-term growth. Key driver for the valuation is the revenue
growth based on the software business performance and future strategic growth plans, market position as
well as the potential in key markets. The applied discount rate is the weighted average pre-tax cost of capital
(WACC). The components of the WACC are risk-free rate, market risk premium, company specific factor, and
industry specific beta, cost of debt and debt/equity ratio. The WACC of 10.24% percent (11.36 %) has been used
in the calculations. As a result of the impairment test, no impairment loss for the CGU was recognized for the
financial period ended December 31, 2024. When assessing the recoverable amounts of cash generating unit,
management believes that no reasonably possible change in any of the key variables used would lead to a
situation where the recoverable amount of the unit would fall below their carrying amount. Considering that,
QPR does not present any sensitivity analyses regarding impairment test.

Accounting estimates and management's judgements
The management uses significant estimates and judgement when determining whether there are indications
of impairment of goodwill. Management judgement has also been used when defining the amount of cash
generating units and considered Process Mining software business area and related consulting recoverable
cash flows, as well as recoverable cash flows from common functions. The cash flow projections are based on
budgets and financial estimates approved by management covering a 5-year period. Cash flow forecasts are
based on QPR’s existing business structure, actual results and the management’s best estimates on future
Net Sales, cost development, general market conditions and growth potential on the market as well as
economic uncertainties. Management has considered decided structural changes impacting to all business



Graphics
48 (80)


areas for improving performance as well as realized last quarter growth drivers. Management tests the
impacts of changes in significant estimates used in forecasts by sensitivity analyses.



15. Tangible and right-of-use assets
Machinery Right-of-use
and assets:
Group (EUR 1,000), IFRS equipment buildings
Book value Jan 1, 2023 2,277 756
Increases - -
Decreases - -319
Depreciation for the financial year -90 -118
Acquisition cost Dec 31, 2023 2,277 1,535
Accumulated. depreciation and write-downs
Dec 31, 2023 -2,195 -1217
Book value Dec 31, 2023 81 318
Book value Jan 1, 2024 81 318
Increases - 412
Decreases -6 -307
Depreciation for the financial year -55 -47
Acquisition cost Dec 31, 2024 2,272 1,641
Accumulated depreciation and write-downs Dec
31, 2024 -2,250 -1,264
Book value Dec 31, 2024 20 377
The Notes related to lease agreements in Right-of-use assets are presented in Notes 27 Leases agreements.



16. Shares and other investments
The parent company of the Group is QPR Software
Plc.
Subsidiaries owned by parent company Domicile 2024 2023
Owned directly:
Helsinki,
QPR CIS Oy Finland 100 % 100 %
QPR Software AB Stockholm, Sweden 100 % 100 %
Helsinki,
QPR Services Oy Finland 100 % 100 %
San Jose, CA,
QPR Software Inc. USA 100 % 100 %
QPR Software Limited London, UK 100 % 100 %
Other shares 2024 2023
Acquisition cost Jan 1 4,562 4,562
Acquisition cost Dec 31 4,562 4,562
Book value Dec 31 4,562 4,562



Graphics
49 (80)

17. Deferred tax assets and liabilities

Deferred tax assets, based on tax-loss carryforwards, have changed as follows:
Group, IFRS
(EUR 1,000)
2024 2023
Jan 1 273 273
Recorded in income statement 52 -
Dec 31 325 273

During the financial year, the Group was able to utilize the unused tax losses of its Finnish companies
amounting to EUR 327 thousand in the corporate taxation of these companies.
A deferred tax asset of EUR 325 thousand (2023:273 thousand) has been recognized in the balance sheet for
confirmed and estimated unused losses of the Group’s Finnish Companies. These tax assets companies will
most likely be able to utilize before the end of the utilization period.
Unbooked deferred tax assets for the loss in 2023 amount to EUR 216 thousand, for 2022 amounted to EUR 591
thousand and for year 2021 amounted to EUR 119 thousand. The total of unbooked deferred tax assets is EUR
926 thousand. Recognized and unrecognized deferred tax assets are EUR 1,250 thousand.
As of the Financial Statement date December 31, 2024, QPR has estimated if it is probable that the company
can utilize the deferred tax assets in future. The evaluation was mainly based on previous results of the
financial years. The conclusion drawn based on the evaluation is based on emphasizing objective unfavorable
evidence compared to more subjective favorable evidence. The primary factors in this assessment are used
more objectively include realized long-term financial performance compared to inherently more subjective
expectations of future financial performance in Finland. QPR continues to assess the utilization of deferred tax
assets, especially monitoring realized profits, and may reclassify the deferred tax asset related to Finland back
to the balance sheet when sufficient tax profitability is achieved. In Finland, deferred tax assets can be offset
against profits for the next ten tax years from 2027 to 2033, and those can be utilized against future tax
liabilities in Finland.


18. Trade and other receivables
Group, IFRS
(EUR 1,000)
2024 2023
Trade receivables 2,024 1,290
Credit loss provision -5 -7
Accrued income and prepaid expenses 186 218
Other receivables 150 205
Total 2,355 1,706


Graphics
50 (80)

Geographical breakdown of trade receivables:
Finland 691 547
Other European countries incl. Turkey 650 452
Countries outside Europe 683 291
Total 2,024 1,290
Currency breakdown of trade
receivables:
Group, IFRS
(EUR 1,000) 2024 % 2023 %
EUR (Euro) 1,634 80.7 1,014 78.6
USD (U.S. Dollar) 307 15.2 248 19.2
SEK (Swedish Krona) 18 0.9 3 0.2
ZAR (South African Rand) 15 0.7 9 0.7
JPY (Japanese Yen) 21 1.0 13 1.0
GBP (Pound Sterling) 29 1.4 4 0.3
AED (United Arab Emirates
dirham) 0 - - -
Total 2,024 100 1,290 100
Age analysis of trade
receivables:
Group, IFRS
(EUR 1,000) 2024 % 2023 %
Not due 1,363 67.4 681 52.8
0 - 90 days overdue 593 29.3 543 42.1
90 - 180 days overdue 63 3.1 33 2.5
More than 180 days overdue 5 0.2 33 2.6
Total 2,024 100 1,290 100

Fair value of trade receivables:
The initial book value of trade receivables equals fair value because the effect of discounting is not material
considering maturity.


Graphics
51 (80)

Credit losses and provision of credit losses
The Group recognizes expected credit loss provision based on the age of the trade receivable.
Group, IFRS
Credit loss expectation
based on trade receivables
Trade 2024
receivables
Not due 1,363 0
0 - 60 days overdue 566 3
60 - 120 days overdue 62 1
120 - 180 days overdue 29 1
>180 days overdue 5 0
Total 2,024 5
In addition to the maturity-based matrix for trade receivables, in 2024, the Company has not recognized
additional provisions for credit losses (2023: EUR 0).
Credit losses of EUR 3 thousand (2023: EUR 2 thousand) on trade receivables have been recognized in the
Group’s result.


19. Cash and cash equivalents
Group, IFRS
(EUR 1,000)
2024 2023
Bank accounts 825 884
Total 825 884


Graphics


52

(
80
)





20. Balance sheet items related to customer contracts

Group, IFRS
(EUR 1,000)
2024 2023
Trade receivables 2,024 1,290
Contract assets 119 34
Contract liabilities -2,534 -2,186

Contract assets are items for which performance obligations have already been fulfilled, but the customers
have not yet been invoiced. In QPR Software, contract assets are usually related to consulting services, which
are invoiced after the performance obligations have been fulfilled.

Contract liabilities, on the contrary, are items which have already been invoiced, but for which performance
obligations have not yet been entirely fulfilled. In QPR Software, contract liabilities are usually related to
maintenance or SaaS fees, which are invoiced in advance and are recognized as revenue over the duration of
the contract period.




































Graphics


53

(
80
)






21. Shareholders' equity

Share
The Company has one series of shares and the maximum value of share capital is EUR 80 thousand. All issued
shares have been paid in full.


Other funds
Includes the reserve fund in subsidiary QPR Software AB.

Treasury shares
Includes the purchase price of shares repurchased by the Group.


Invested unrestricted equity fund
Invested unrestricted equity fund includes proceedings from right issuance arranged in third
quarter 2023. Along the right issuance 1,719,871 new shares were registered. According to Finnish
accounting standards, invested unrestricted equity fund is reported into gross value.




Changes in number of shares







Parent company QPR Software
Oyj
(1 000 pcs)
2024 2023
Shares at Jan 1. 18,175 16,455
Subscriptions - 1,720
Shares at Dec. 31 18,175 18,175
























C
alculation of the distributable funds




Parent company QPR Software Oyj
(EUR)
2024 2023
-
Retained earnings -4,205,310 2,747,372
-
Result for the financial year -643,379 1,402,736
Dividends paid - -
Treasury shares -244,349 -347,552
Invested unrestricted equity fund 5,529,731 5,529,731
Distributable funds 436,693 1,032,072




















































Graphics


54

(
80
)




22. Other non -current liabilities and interest-bearing loans

Non-current liabilities Group, IFRS
(EUR 1,000)
2024 2023
Non-current Lease liabilities 372 192
Loans from banks 500 1,000
Total 872 1,192


























Current interest-bearing loans Group, IFRS
(EUR 1,000)
2024 2023
Loans from banks, next year
repayment 500 500
Lease liabilities 29 126
Total 529 626
































The company has EUR 500 thousand of long term and 500 thousand of short-term loan from banks. Interest-
bearing loans consist of Euribor 12 months and 1.05% interest margin.

The Group has a credit limit of EUR 0.5 million, which was not in use at the end of 2024 (2023: EUR 0
thousand).


The parent company has a revolving credit facility of EUR 1.5 million with Nordea for financing need. The funds
were used at the end of 2024 EUR 0.5 million (2023: EUR 1.0 million) in the long-term loans and EUR 0.5 million
(2023: EUR 1.0 million) in the short-term loans. The agreement for the revolving credit facility was renewed
24th January 2023 and transferred as long-term loan. A new loan has a loan period of three (3) years and will
be maturing on January 31, 2025, and January 31, 2026.

Covenants attached to the loan, are based on the company's EBITDA and equity ratio. The EBITDA is tested
every six months, and the equity ratio is tested annually according to the situation on the last day of the year.
At the covenant test on December 31, 2024, EBITDA exceeded the covenant limit agreed.

Considering the discounted present value of the debt, taking into account its maturity and interest rate, it is
981 thousand euros, which is 18 thousand euros lower than the original book value of the debt, which was 1.0
million euros.














Graphics


55

(
80
)



Repayment schedule of right-of-use liabilities

Group, IFRS
(EUR 1,000)
2024 2023
Nominal Book
interest rate Maturity value Book value
Lease liabilities 4.0% 2024-2034 402 318
Interest-bearing right-of-use
liabilities 402 318





































23.
Trade payables and other liabilities

Group, IFRS
(EUR 1,000)
2024 2023
Trade payables 374 212
Accrued expenses and prepaid income 707 1,539
Advances received 2,363 1,558
Other liabilities 659 395
Total 4,104 3,703


The initial carrying amount of trade payables and other liabilities corresponds to the fair value because the
effect of discounting is not material considering the maturity of the item. The amount of trade payables in
foreign currencies was 25%, (2023: 23%).




















Graphics


56

(
80
)



24. Classification of financial assets and liabilities
The table discloses carrying amounts of financial assets and financial liabilities. The fair value hierarchy level for
equity investments measured at fair value is 3. The carrying amount of other financial assets and financial
liabilities is a reasonable estimate of their fair value. The financial assets and liabilities are classified in
accordance with IFRS 9.
Carrying amounts of financial assets and financial liabilities Dec. 31, 2024

At fair value Recognised
through profit or at amortised
Note loss cost Total
Financial assets
Financial assets measured at fair
value
Equity investments 16 5 5
Total 5 5
Financial assets not measured at
fair value
Trade and other receivables 18 2,355 2,355
Cash and cash equivalents 19 825 825
Total 3,180 3,180
Financial liabilities
Financial liabilities not measured
at fair value
Bank borrowings 22 1,000 1,000
Right-of-use liabilities 22 402 402
Trade payables and other liabilities 23 4,104 4,104
Total 5,505 5,505
















































































































Graphics


57

(
80
)



25. Adjustments to the cash flow from operating activities
Group, IFRS
(EUR 1,000)
2024 2023
Other items 111 21
Total 111 21

Other items include Stock option program IFRS2 adjustments and accounts payable related to investments.







26. Commitments and contingent liabilities


Group, IFRS
(EUR 1,000)
2024 2023
Business mortgage 2,382 2,382
Lease liabilities and rental commitments
Maturing within one year 26 30
Maturing during in 1-5 years - 27
Total 2,408 2,439

Business mortgages are given as guarantee for Nordea towards revolving credit facility loan (EUR 1,5 million).



Rental guarantees totaling EUR 3 thousand are included in other current receivables.


Rental agreements related to office furniture and IT equipment are included in rental commitments.






















Graphics


58

(
80
)



27. Lease agreements

Leases in the Balance Sheet

Group, IFRS
(EUR 1,000)
Dec 31, 2024 Dec 31, 2023
Assets
Non-current assets
Right-of use assets, buildings 402 318
Total 402 318
Lease liabilities, non-current 372 192
Lease liabilities, current 29 126
Total 402 318


Lease assets and liabilities are related to the office lease agreement of the Group parent company. The
maturity of the agreement is presented in the Notes 28 Financial Risk Management.

Leases in the Income Statement
2024 2023
Depreciation of right-of-use assets -47 -118
Interest expenses -18 -6
Total -65 -124

The total cash outflow for leases in 2024 was EUR 152 thousand (2023: 121).



28. Financial Risk Management

The International business operations of QPR Group are exposed to risks typical in normal
international transactions. Financial risk management aims to secure sufficient financing
cost-effectively and to monitor, and when necessary, to mitigate the materializing risks.
Risk management is a centralized responsibility of the Group’s financing function and the
CEO. The general risk management policies are approved by the QPR Software Plc Board
of Directors. The Board is also responsible for supervising the adequacy, appropriateness,
and effectiveness of the Group’s risk management

Foreign exchange risk
The main sales currency for the Group is Euro and most purchases are made in Euros.




Graphics


59

(
80
)





The majority of trade receivables are in Euros (EUR), 81% (79). During the financial year, the
most significant invoicing currencies after EUR were the U.S. Dollar (USD) and the
Japanese yen (JPY). If the value of USD and JPY against EUR were to decrease by 10%, and
the share of currencies were to remain on the same level, the value of trade receivables
would decrease by EUR 22 thousand, equaling 0.3 % of the total value of all trade
receivables. Correspondingly, if the value of all non-EUR invoicing currencies were to
decrease by 10%, the value of trade receivables would decrease by EUR 29 thousand. A
breakdown of trade receivables by currency is presented in Note 18.
In accordance with the foreign exchange risk policy approved by the Board of Directors,
the Company may engage in foreign currency hedging. The purpose of currency hedging
is to reduce the uncertainty brought by exchange rates and to minimize the adverse
impact of exchange rate changes to the Group’s cash flow, financial results, and equity.
Management regularly reviews the Company’s foreign exchange risks, taking into account
the hedging costs. At the end of 2024 and 2023, the Company did not have any hedging
instruments.
Interest rate risk
The impact of interest rate changes on the Group result is insignificant and the Group did
not take any hedging measures during the financial year. According to the financing
agreement made on January 24th, 2024, the interest rate for the 0.5 million EUR long
term and 0.5 million EUR short term loans is tied to 12 months Euribor.

Liquidity risk
Liquidity risk is defined as financial distress or extraordinarily high financing costs due to
the shortage of liquid funds in a situation where business conditions unexpectedly
deteriorate and require financing.
The purpose of liquidity risk management is to maintain sufficient liquidity and to ensure
that funds are continuously available to finance business operations quickly enough. QPR
maintains sufficient liquidity through efficient cash management and deposits. The
Parent company has a loan amount of 1.0 million, bind under covenants, measured
against EBITDA and own equity ratio. EBITDA based performance measure is tested bi-
annually and own equity ratio annually in the end of year. The credit limit will be repaid in
instalments of 500 thousand on January 31, 2025, and January 31,2026.












Graphics


60 (80)





Maturity of financial assets and liabilities (numbers
are undiscounted)




Dec, 31 2024





Group, IFRS






beyond
Book 0–6 7–12 12
(EUR 1,000) value months months months
Trade and other payables 374 374 - 12
Bank borrowings, revolving
credit facility 1000 500 - 500
Lease liabilities (IFRS16) 402 16 17 369
Total 1 776 890 17 869






















Dec, 31 2023





Group, IFRS






beyond
Book 0–6 7–12 12
(EUR 1,000) value months months months
Trade and other payables 212 212 - -
Bank borrowings, revolving
credit facility 1500 500 - 1000
Lease liabilities (IFRS16) 318 57 69 192
Total 2 031 769 69 1 192





The average interest rate of the bank loan was 3,917% (year 2023: 3,917%), which consist of Euribor 12
months and 1.05% interest margin. Trade payables were interest-free and the imputed interest of the lease
liability is 4.0% (year 2023: 4.563%).
















Operative credit risk

The Group’s international business operations are by their nature exposed to reasonable credit risk related to
individual partners. However, the Group’s customer base and reseller network is broad and spread over several
market areas. Thus, the Group’s trade receivables are collected from a large number of resellers and customers
in several market areas, and according to management’s estimate there are no concentrations of reseller,
customer, or geographical risks. In addition, the continuous and active monitoring of receivables and credit
limits aim to mitigate the Group’s credit risks. The Group’s maximum credit risk corresponds to the book value
of trade receivables. Additional information on the Group’s trade receivables is presented in Note 18.











Graphics


61 (80)



29. Capital management






Group, IFRS
(EUR 1,000)
2024 2023
Cash and cash equivalents 825 884
Net liabilities 577 934
Shareholders' equity 401 348
Gearing, % 143.9 268.3
Equity ratio, % 11,9% 8,1%
Total balance sheet 5,906 5,869






























The development of Group's capital structure is monitored, in particular, through gearing and equity ratio.




30. Reconciliation of alternative key figures


2024 2023
Total Equity at the end of the period 401 348
Balance sheet total 5,906 5,869
Advances received at the end of the period 2,534 1,558
Total equity at the end of the period / 11.9% 8.1%
(Balance sheet total - advances received at the end of the
period)





























Graphics


62

(
80
)



Parent Company QPR Software Oyj
Financial Statements 2024

Parent Company Income Statement, FAS









(EUR) Note 2024 2023
Net sales 3 6,098,792 6,957,506
Other operating income 4 458,607 388,696
Material and services 5 3,041,734 2,301,230
Personnel expenses 6 2,419,236 3,992,126
Depreciation and amortization 8 125,312 158,066
Other operating expenses 9 1,505,733 1,828,896
Total expenses 7,092,015 8,280,317
Operating result -534,617 -934,116
Financial income and expenses 10 -108,762 -468,620
Result before taxes -643,379 -1,402,736
Income taxes 11 - -
Result for the financial year -643,379 -1,402,736





























































































Parent Company Balance Sheet, FAS


Graphics


63

(
80
)











(EUR)

Note

2024

2023

ASSETS








Non-current assets



Intangible assets

13.14

13,781

84,107

Tangible assets

15

20,260

80,775

Investments in group companies 16

3,497,653

3,497,653

Other investments

16

4,562

4,562

Total non
-
current assets


3,536,256

3,667,098





Current
assets




Current receivables

16

2,885,012

3,472,941

Cash and cash equivalents

17

799,527

859,814

Total current assets

3,684,539

4,332,755





Total assets



7,220,795

7,999,852





EQUITY AND LIABILITIES








Equity



Share capital

19

80,000

80,000

Invested unrestricted equity fund

19

5,529,731

5,529,731

Retained earnings

-4,205,310

-2,747,372

Treasury shares

-244,349

-347,552

Result for the financial year



-
643,379

-
1,402,736

Total equity


516,693

1,112,072





Liabilities




Non
-
c
urrent liabilities

20

500,000

1,000,000

Current liabilities 20.21

6,204,102

5,887,781





Total liabilities


6,704,102

6,887,781





Total equity and liabilities 7,220,795

7,999,852






Parent Company Cash Flow
Statement, FAS












Graphics


64

(
80
)



(EUR)

2024

2023





Cash flow from operations



Operating result

-
643,379

-
1,402,736

Adjustment for the period:





Depreciation and amortization 125,312

158,066


Non
-
cash transactions

48,000

356,610

Financial
items, net

-
4,733

-
69,746

Taxes paid

-
11,877

-

Cash flows before change in working capital

-
486,677

-
957,806




Change in working capital



Increase (-) / decrease (+) in current receivables -622,550

1,807,431


Increase (
-
) / decrease (+) in current liabilities*

-
24,278

-
952,531

Change in net working capital

-
646,828

854,900




Net cash from operating activities

-
1,133,505

-
102,905




Cash flows from investing activities



Investments in
intangible assets

0

-
1,657

Purchases of tangible assets

0

0

Investments in subsidiary loans granted 1,573,218

203,694

Net cash used in investing activities 1,573,218

202,037






Cash flows from financing activities





Proceeds from current
loans and borrowings

-

1,500,000

Repayments of short
-
term borrowings

-
500,000

-
1,500,000

Proceeds from share issuance -

759,744

Cash flows from financing activities

-
500,000

759,744




Change in cash and cash equivalents

-
60,287

858,876




Cash
and cash equivalents at the beginning of the year

859,814

938

Cash and cash equivalents at the end of the year

799,527

859,814





Parent company statement of changes in shareholders’ equity, FAS










Restricted equity Unrestricted equity


Graphics


65

(
80
)







Invested
unrestricte Total
Number Total Share Treasury d equity Retained unrestricted Total
(EUR) of shares capital shares fund earnings equity equity
Equity
31.12.2022 16,455,321 1,359,090 -405,726 3,454,341 -2,737,197 311,417 1,670,507
Right issue 796,300 796,300 796,300
Reduction of -
share capital 1,279,090 1,279,090 1,279,090 0
Disposal of
own shares 58,175 -10,175 48,000 48,000
Result for the
year -1,402,736 -1,402,736 -1,402,736
Equity
31.12.2023 18,175,192 80,000 -347,551 5,529,731 -4,150,108 1,032,072 1,112,072
Right issue 0 0 0
Reduction of
share capital 0 0 0 0
Disposal of
own shares 103,202 -55,202 48,000 48,000
Result for the
year -643,379 -643,379 -643,379
Equity
31.12.2024 18,175,192 80,000 -244,349 5,529,731 -4,848,688 436,692 516,693


























































































1. Accounting principles of Parent company Financial Statements

Financial statements of the parent company, QPR Software Plc, have been prepared in accordance with
Finnish Accounting Standards and corporation legislation (FAS), which differ in certain respects from the
international standards (IFRS) used in the Consolidated Financial Statements.

Financial statements have been prepared using historical cost convention, unless otherwise disclosed in the
accounting principles below. The parent company financial statements are presented in Euro. All figures are
rounded, which means that the sum of individual amounts may differ from the total presented. Key figures
have been calculated using exact amounts.

Foreign currency translation
Transactions denominated in foreign currency are translated using the exchange rate on the transaction date.
At the end of the reporting period, financial assets and liabilities denominated in foreign currency are valued
at balance sheet date. Exchange rate differences arising from foreign currency business transactions are
recorded in their corresponding income statement accounts above operating profit; and the net exchange
rate differences arising from financial items are recorded in financial income or expenses.




Revenue recognition and Advance payments
The parent company applies the same principles of revenue recognition and advance payment booking
principles as the Group. The Group’s principles of revenue recognition and advance payments are introduced
in the accounting principles for consolidated financial statements.


Graphics


66

(
80
)



Other operating income
Other operating income includes income that is not related to the parent company’s core business. Public
subsidies are included in other operating income, except when they are related to investments, in which case
they are deducted from the acquisition cost of the asset.

Research and development expenditure
Research costs are expensed as incurred. Expenses related to the introduction of new technology, or the
development of a new product are capitalized and amortized over the useful life of 4 years. When determining
the duration of useful economic life, the technology’s eventual obsolescence and the product’s typical life
cycle are considered. Amortization begins when the product becomes commercially viable. Maintenance costs
and minor improvements to existing products are expensed.

2. Segment information
QPR Software reports on one operating segment which is Operational development of organizations.
Segment information has been presented in the Notes number 2. Segment information.

3. Net sales

Net Sales by Product Group






The Group’s net sales derive from software and consulting businesses are broken down as
follows:

Parent company, FAS
(EUR)
2024 2023
Software licenses 915,791 446,561
Renewable software licenses 194,732 239,533
Software maintenance services 1,486,559 1,480,323
Cloud services 2,671,602 2,322,405
Consulting services 830,108 2,468,683
Total net sales 6,098,792 6,957,506


























































Net sales geographically





The geographical areas reported are Finland, the rest of Europe (including Turkey), and the rest of the world.
Net sales are reported according to the customer’s location. The company has closed its business and
partnerships in Russia for the time being.
 


Parent company, FAS
(EUR)
2024 2023
Finland 2,454,348 3,499,399
Europe incl. Turkey 2,219,453 2,627,272
Rest of the world 1,424,991 830,835
Total net sales 6,098,792 6,957,506




















Balance sheet items based on customer agreements are presented in Note 18.

4. Other operating income

Parent company, FAS


Graphics


67

(
80
)




(EUR)
2024 2023
Other items 458,607 388,696
Total 458,607 388,696











The other items include intra-group service charges from the group companies.

5. Materials and services


Parent company, FAS
(EUR)
2024 2023
Materials and services 3,041,734 2,301,230












Materials and services of the parent company include intra-group license fees in addition to the above-
mentioned expenses.

6. Employees and related
parties




Parent company, FAS
(EUR)
2024 2023
Wages and salaries 2,061,388 3,339,953
Pension expenses - defined contribution
plans 393,244 551,973
Other personnel expenses -35,396 100,200
Total 2,419,236 3,992,126
Average number of employees during the
year (persons) 20 40

























Related parties

The Group and the parent company’s related parties include members of the parent
company’s Board of Directors and the Executive Management Team, including the Chief
Executive Officer, their spouses, domestic partners, children and dependents, spouses’ or
domestic partners’ children and dependents, as well as entities controlled by any such
related party.

The parent company does not have any loans, commitments or guarantees granted to or
received from related parties. The Parent company has not had business transactions
with related parties in 2024 and 2023.


Graphics


68

(
80
)



Related parties to the parent company also include subsidiaries in the Group. The list of
Group companies is presented in Note 13. Shares in subsidiaries and other entities.
Transactions between the parent company and other Group companies, as well as intra-
Group receivables, liabilities, commitments, and guarantees are included as total
amounts in the notes for the parent company financial

statements.




Salaries, bonuses, fringe benefits and change in vacation bonus and bonus accruals
for management

The Group has determined management to include members of the Board of Directors and the Executive
Management Team, including the Chief Executive Officer.


Parent company, FAS
(EUR)
2024 2023
Salaries and other short-term
benefits:
Members of the Board of Directors 120,000 120,000
Chief Executive Officer Jussi
Vasama - 55,937
Chief Executive Officer Heikki
Veijola 181,089 162,593
Executive Management Team 1,029,037 1,041,134
Total 1,330,126 1,379,664































Parent company, FAS
(EUR)
2024 2023
Board fees by member:
ErviPertti, Chairman of the Board 45,000 45,000
Heikkonen Matti - 25,000
Koskela Antti 25,000 25,000
von Schantz Linda 25,000 -
Tapaninen Jukka 25,000 25,000
Total 120,000 120,000






























Graphics


69

(
80
)



QPR Software Plc's Annual General meeting held on May 15, 2024, resolved that EUR
45,000 annual fee (2023: EUR 45,000) shall be paid for the Chairman of the Board of
Directors and EUR 25,000 (2023: EUR 25,000) annual fee shall be paid for the other
members of the Board of Directors. Approximately 40 % of the remuneration to the
members of the Board of Directors will be paid in the company’s shares and 60% in cash,
and the shares will be granted as soon as it is possible after the next Annual General
Meeting

when insider rules allow it. No separate meeting fees are paid.







The Company does not have any exceptional pension arrangements for the CEO.
Pension expenses accrued, based on the CEO's salary and bonuses and the Finnish
pension legislation, amounted to EUR 31.866
i
n 2024 (2023: EUR 39.022).







The period of notice for the CEO is four (4) months. Compensation on termination is
equivalent to three (3) month's salary. Other members of the Group's Executive
Management Team do not enjoy special benefits related to termination of their contract.






7. Share based payments

Option scheme
QPR Software is operating with 2022, 2023 and 2024 stock option plans intending to use these as part of the
Group's incentive and commitment program for the key employees. The purpose of the stock options is to
encourage the key employees to work on a long-term basis to increase the shareholder value and retain the
key employees at the company. The stock options are issued gratuitously.

The subscription period for the previous stock options marked 2019 B was January 1 - January 31, 2024, and no
shares were exercised in the scheme.

The number of shares for the stock option plan 2022, subscribed by exercising stock option corresponds to a
maximum of 1.9% of the Company’s shares and votes after possible share subscriptions, if new shares are
issued in the share subscription. As a result of the share subscriptions with stock options, the number of the
Company’s shares may increase by a maximum of 489,542 shares, if new shares are issued in the share
subscription.

The number of shares for the stock option plan 2023, subscribed by exercising stock options corresponds to a
maximum of 5.2% of the Company’s shares and votes after possible share subscriptions, if new shares are
issued in the share subscription. As a result of the share subscriptions with stock options, the number of the
Company’s shares may increase by a maximum of 1,000,000 shares if new shares are issued in the share
subscription.

The number of shares for the stock option plan 2024A, subscribed by exercising stock option corresponds to a
maximum of 4.0% of the Company’s shares and votes after possible share subscriptions, if new shares are
issued in the share subscription. As a result of the share subscriptions with stock options, the number of the
Company’s shares may increase by a maximum of 720,000 shares.

The amount of 540 000 stock options is marked with the symbol 2024 B and 540 000 with the symbol 2024 C.
The share subscription period with the Stock Options 2024 B shall be between September 9, 2028 and

Graphics


70

(
80
)



September 8, 2030. The share subscription period with the Stock Options 2024 C shall be between September
9, 2029 and September 8, 2031. The theoretical market value of the stock options 2024 B and stock options
2024 C shall be determined at the grant date of the stock options.


The terms and conditions of the stock options 2022, 2023 and 2024 are available on the company’s webpage:
www.qpr.com.

Share
-
based payment arrangements granted










2022

2023

2024

Subscription period


15.6.2025
-
31.5.2027

6.9.2026 -
6.9.2028

10.9.2024.-
9.9.2029

Share subscription price


0.85

0.42

0.59

Stock options outstanding at the end of the period, pcs


489.542

1.000.000

720.
0
00

Estimated expense of share option program, EUR 1,000

88

150

131




8. Depreciation and amortization




Parent company, FAS

(EUR)



2024

2023

Intangible assets 70,327

67,975

Tangible assets




Machinery and equipment

54,986

90,091

Total

125,312

158,066


No write-downs on assets were booked in 2024 and 2023.

9. Other operating expenses

Parent company, FAS


(EUR)

(EUR 1,000)

2024

2023

Non
-
statutory indirect employee costs

51,933

66,015

Premises

87,851

169,780

Travel expenses

45,767

14,428

Marketing and other sales promotion

199,911

222,965

Computers and software

258,480

601,099

External services

724,780

573,746

Doubtful
receivables and bad debts

-
21,474

-
4,948

Other expenses

158,485

185,810

Total

1,505,733

1,828,896


Other expenses include fees paid to the Company’s auditor as follows:

Graphics


71

(
80
)




Auditing

62,514

67,572

Other services

3,208

2,000

Total 65,722

69,572


Product development expenses incurred during the year

Expenses recognized in profit or loss

3,000

13,913

Capitalized expenses -

-

Total 3,000

13,913


Product development expenses mainly consist of external services and personnel expenses. Recognized
expenses do not include amortization.

10. Financial income and expenses

Recognized in profit or loss



Parent company,
FAS


(EUR)




2024

2023

Interest income from loans and other receivables

5,083

655

Impairment losses of
holdings in Group
companies

-

-
83,610

Interest expenses of the financial liabilities
measured at amortized cost

-
23,413

-
88,322

Other financial income and expenses

-
90,386

-
317,272

Exchange rate differences -47

19,929

Total -108,762

-468,620




Exchange rate differences in profit and loss






Exchange rate differences included in net sales

11,105

-
36,867

Exchange rate gains in financial income

9,387

0

Exchange rate losses in financial expenses

3,639

19,929

Total

24,131

-
16,938


Other Financial income and expenses in parent company include right issue costs worth of EUR 93,409 in
comparative year.




Graphics


72 (80)



11. Income taxes

Recognized in profit or loss

Group, IFRS



(EUR 1,000)



2024
2023


Current tax expense
0
0


Tax expense from previous years
0
0



12. Deferred tax assets

The company has not recognized deferred tax assets in 2024. 2023 and 2022, Unrecognized deferred tax assets
in the end 2024 were EU 1,088,686.

As of the Financial Statement date December 31, 2024, QPR has estimated if it is probable that the company
can utilize the deferred tax assets in future. The evaluation was mainly based on previous results of the
financial years. The conclusion drawn based on the evaluation is based on emphasizing objective unfavorable
evidence compared to more subjective favorable evidence. The primary factors in this assessment are used
more objectively include realized long-term financial performance compared to inherently more subjective
expectations of future financial performance in Finland. QPR continues to assess the utilization of deferred tax
assets, especially monitoring realized profits, and may reclassify the deferred tax asset related to Finland back
to the balance sheet when sufficient tax profitability is achieved. In Finland, deferred tax assets can be offset
against profits for the next ten tax years from 2028 to 2033, and those can be utilized against future tax
liabilities in Finland

13. Intangible assets
Parent company (EUR), FAS
Computer
software
Other
intangible
assets
Capitalized
product
development
Total
Book value Jan 1, 2023
120,500
28,185
1,740
150,399
Increases
0
1,657
0
1,657
Decreases



0
Amortization for the financial year
-63,664
-2,571
-1,740
-67,975
Acquisition cost Dec 31, 2023
1,331,427
1,588,783
365,292
3,285,502
Accumulated amortization and write-downs Dec 31,
2023
-1,274,591
-1,561,512
-365,292
-3,201,395
Book value Dec 31, 2023
56,836
27,271
0
84,107
Increases



0
Amortization for the financial year
-55,676
-14,650
0
-70,327
Acquisition cost Dec 31, 2024
1,331,427
1,588,783
365,292
3,285,502
Accumulated
amortization and write-downs Dec 31, 2024
-1,330,268
-1,576,162
-365,292
-3,271,721
Book value Dec 31, 2024
1,160
12,620
0
13,781



Graphics


73

(
80
)




14. Tangible and right-of-use assets

Parent company

(EUR), FAS



Machinery
and
equipment

Book value Jan 1, 2023


170,866

Increases


-

Depreciation for the financial year



-
90,091

Acquisition cost Dec 31, 2023


2,237,106

Accumulated depreciation and
write
-
downs Dec 31, 2023



-
2,156,331

Book value Dec 31, 2023



80,775

Book value Jan 1, 2024


80,775

Increases

0

Depreciation for the financial year



-
60,515

Acquisition cost Dec 31, 2024


2,237,106

Accumulated depreciation and
write-downs Dec 31, 2024 -2,216,846

Book value Dec 31, 2024



20,260
























Graphics


74

(
80
)




15. Shares and other entities

The
parent company of the Group is
QPR Software Plc.









Parent company

Subsidiaries

Domicile



2024

2023

Owned directly by the parent
company:






QPR CIS Oy

Helsinki,
Finland


100 %

100 %


QPR Software AB

Stockholm, Sweden

100 %

100 %


QPR Services Oy

Helsinki,
Finland


100 %

100 %


QPR Software Inc.

San Jose, CA, USA

100 %

100 %


QPR Software Limited

London, UK


100 %

100 %












Parent company




(EUR 1,000)

Shares in subsidiaries





2024

2023

Acquisition cost Jan 1



3,497,653

3,581,263

Decreases


-

-83,610

Acquisition cost Dec 31





3,497,653

3,497,653

Book value Dec 31



3,497,653

3,497,653






Other shares





Acquisition cost Jan 1



4,562

4,562

Acquisition cost Dec 31





4,562

4,562

Book value Dec 31



4,562

4,562






Total book value of shares Dec 31


3,502,215

3,502,215










Graphics


75 (80)





16. Trade and other receivables

Parent company, FAS

(EUR)

2024
2023
Trade receivables
1,840,904
1,179,236
Accrued income and prepaid expenses
180,151
203,191
Other receivables
56,527
83,565
Current receivables from Group
companies
807,429
2,006,949
Total
2,885,011
3,472,941



Geographical breakdown of trade receivables:




Finland
626,171
546,539
Other European countries
552,393
371,457
Countries outside Europe
662,341
261,240
Total
1,840,904
1,179,236

Fair value of trade
receivables:





The initial book value of trade receivables equals fair value because the effect of
discounting is not material considering maturity.




Credit losses of EUR 2,466.62 (2023: EUR 280.00) on trade receivables have been recognized in the Group’s
result.

Breakdown of the parent company's accrued income and prepaid expenses:




Parent company, FAS




(EUR)




2024
2023
Accrued income



3,480
33,522
Prepaid expenses



176,671
168,077
Total



180,151
201,599

Breakdown of the parent company's receivables from Group companies:




Parent company, FAS




(EUR)




2024
2023
QPR Services Oy



795,228
2,006,949
QPR CIS Oy



6,210
-

Graphics


76

(
80
)



QPR Software Ltd







5,991

-

Total




807,429

2,006,949


17. Cash and cash equivalents



Parent company, FAS


(EUR)


2024

2023

Bank accounts

799,527

859,814

Total

799,527

859,814



18. Balance sheet items related to customer contracts

Parent company, FAS


(EUR)

2024

2023

Trade receivables 1,840,904

1,179,236

Contract assets

3,480

33,522

Contract liabilities -2,250,457

-2,061,924


Contract assets are items for which performance obligations have already been fulfilled, but the customers
have not yet been invoiced. In QPR Software, contract assets are usually related to consulting services, which
are invoiced after the performance obligations have been fulfilled.

Contract liabilities, on the contrary, are items which have already been invoiced, but for which performance
obligations have not yet been entirely fulfilled. In QPR Software, contract liabilities are usually related to
maintenance or SaaS fees, which are invoiced in advance and are recognized as revenue over the duration of
the contract period.



19. Shareholders' equity
The Company has one series of shares and the maximum value of share capital is EUR 80,000.00. All issued
shares have been paid in full.

Other funds














Includes the reserve fund in subsidiary QPR Software AB.
Treasury shares














Includes the purchase price of shares repurchased by the Group















Invested unrestricted equity fund






Invested unrestricted equity fund includes proceedings from right issuance arranged in third quarter 2023. Along
the right issuance 1,719,871 new shares were registered. According to Finnish accounting standards, invested
unrestricted equity fund is reported into gross value.


Graphics


77

(
80
)





Calculation of the distributable funds












Parent company, FAS






(EUR)





2024

2023

Retained earnings



-
4,205,310

-
2,747,372

Result for the financial year



-
643,379

-
1,402,736

Dividends paid



-

-

Treasury shares



-
244,349

-
347,552

Invested unrestricted equity fund



5,529,731

5,529,731

Capitalized development
expenses



-

-

Distributable funds



436,693

1,032,072



20. Other non-current liabilities and interest-bearing loans

Non
-
current liabilities

Parent company


(EUR 1,000)


2024

2023

Loans from banks

500,000

1,000,000

Total

500,000

1,000,000


Current interest
-
bearing loans

Parent company, FAS


(EUR)


2024

2023

Loans from banks,
next year
repayment

500,000

500

Total

500,000

500


The company has EUR 500,000 of long term and EUR 500,000 of short-term loan from banks. Interest-bearing
loans consist of Euribor 12 months and 1.05% interest margin. The loan is repaid in instalments EUR 500,000 on
January 31,2025, and January 31,2026.

The parent company has a revolving credit facility loan of EUR 1.5 million for financing need. The funds were
used at the end of 2024 EUR 1.0 million.

Covenants attached to the loan, are based on the company's EBITDA and equity ratio. The EBITDA is tested
every six months, and the equity ratio is tested annually according to the situation on the last day of the year.
At the covenant test on 31st December 2024, EBITDA was below the agreed covenant limit. In December 2024,
the bank committed to not exercising the right to demand immediately it's receivables based on the
financing agreement if the group breaches a possible EBITDA covenant as of the financial statements in
December 2024. The company has a credit limit of EUR 500 thousand for liquidity risk management, which
was unused at December 31,2024.


Graphics


78

(
80
)



Considering the discounted present value of the debt, taking into account its maturity and interest rate, it is
EUR 981,120, which is 18 thousand euros lower than the original book value of the debt, which was 1.0 million
euros.

21. Trade payables and other liabilities


Parent company, FAS



(EUR)


2024

2023

Provisions for liabilities and charges

-

-

Trade payables

342,346

189,566

Accrued expenses and prepaid
income

415,139

1,262,222

Advances received 2,185,830

1,530,141

Other
liabilities

248,078

309,345

Current liabilities to Group
companies

2,512,709

2,096,506

Total 5,704,102

5,387,781


Breakdown of the parent company's accrued expenses and prepaid income:










Parent company, FAS






(EUR)





2024

2023

Holiday pay, including social costs




270,465

415,751

Bonuses, including social costs




30,413

102,645

Prepaid income




565

612,515

Other accrued expenses




113,697

131,311

Total




415,139

1,262,222


Breakdown of the parent
company's liabilities to Group
companies:










Parent company, FAS






(EUR)





2024

2023

QPR CIS Oy




22,636

23,414

QPR Software AB




1,668,011

1,347,642

QPR Software Inc




822,063

724,532

QPR Software Limited



0

919

Total




2,512,709

2,096,506





Graphics


79

(
80
)





22. Commitments and contingent liabilities

Parent company,
FAS


(EUR)


2024

2023

Business mortgage

2,337,288

2,337,288

Lease liabilities and rental commitments





Maturing within one year

72,114

166,31

Maturing
during in 1
-
5 years

253,418

225,616

Maturing over 5 years

172,961

-

Total

2,835,781

2,729,214

Business mortgages are given as guarantee for Nordea towards revolving credit facility loan value (EUR 1.5 million).
Rental guarantees totaling

EUR 969 are included in other current receivables in the balance sheet.

Rental agreements related office and IT equipment as well as car lease agreements
.






















Graphics


80

(
80
)



Confirmation of Financial Statements preparance – Accounting Act
3, chapter 7§
We confirm that
-

the consolidated financial statements prepared in accordance with the International Financial Reporting
Standards (IFRS) as adopted by the European Union
and the financial statements of the parent company
prepared in accordance with the laws and regulations governing the preparation of financial statements
in Finland give a true and fair view of the assets, liabilities, financial position and profit or loss of the
company and the undertakings included in the consolidation taken as a whole;
-
the management report includes a fair review of the development and performance of the business and
the position of the company and the undertakings included in the consolidation taken as a whole,
together with a description of the principal risks and uncertainties that they face

Signatures of Board of Directors’ Report and Financial Statements

Helsinki, Finland, February 14, 2025
QPR Software Plc
Board of Directors

Pertti Ervi Linda von Schantz
Chairman of the Board Board member


Antti Koskela Jukka Tapaninen
Board member Board member


Heikki Veijola
Chief Executive Officer

Auditor’s Note
An auditor’s report concerning the performed audit has been given today.

Helsinki, Finland, February 14, 2025
KPMG Oy Ab
Authorized Public Accountants
Petri Kettunen
Authorized Public Accountant


Graphics


KPMG Oy Ab
Töölönlahdenkatu 3 A
PO Box 1037
00101 Helsinki
FINLAND
Telephone +358 20 760 3000
www.kpmg.fi
KPMG Oy Ab, a Finnish limited liability company and a member firm of the KPMG global organization of independent member firms
affiliatTelephone +358 20 760 3000
www.kpmg.fied with KPMG International Limited, a private English company limited by guarantee.


Business ID 1805485-9
Domicile Helsinki
This document is an English translation of the Finnish auditor’s report. Only the Finnish version of the report is legally binding.
Auditor’s Report
To the Annual General Meeting of QPR Software Plc
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of QPR Software Plc (business identity code 0832693-7) for the
year ended 31 December 2024. The financial statements comprise the consolidated balance sheet, compre-
hensive income statement, statement of changes in equity, cash flow statement and notes, including material
accounting policy information, as well as the parent company’s balance sheet, income statement, cash flow
statement and notes.
In our opinion
— the consolidated financial statements give a true and fair view of the group’s financial position, financial
performance and cash flows in accordance with IFRS Accounting Standards as adopted by the EU
— the financial statements give a true and fair view of the parent company’s financial performance and
financial position in accordance with the laws and regulations governing the preparation of financial state-
ments in Finland and comply with statutory requirements.
Our opinion is consistent with the additional report submitted to the Board of Directors.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good
auditing practice are further described in the Auditor’s Responsibilities for the Audit of the Financial State-
ments section of our report.
We are independent of the parent company and of the group companies in accordance with the ethical re-
quirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
In our best knowledge and understanding, the non-audit services that we have provided to the parent com-
pany and group companies are in compliance with laws and regulations applicable in Finland regarding these
services, and we have not provided any prohibited non-audit services referred to in Article 5(1) of regulation
(EU) 537/2014. The non-audit services that we have provided have been disclosed in note 9 to the consoli-
dated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Materiality
The scope of our audit was influenced by our application of materiality. The materiality is determined based
on our professional judgement and is used to determine the nature, timing and extent of our audit procedures
and to evaluate the effect of identified misstatements on the financial statements as a whole. The level of
materiality we set is based on our assessment of the magnitude of misstatements that, individually or in
aggregate, could reasonably be expected to have influence on the economic decisions of the users of the
financial statements. We have also taken into account misstatements and/or possible misstatements that in
our opinion are material for qualitative reasons for the users of the financial statements.

Graphics
QPR Software Plc
Auditor’s Report
for the year ended 31 December 2024




2
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the financial statements of the current period. These matters were addressed in the context of our audit of
the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters. The significant risks of material misstatement referred to in the EU Regulation No
537/2014 point (c) of Article 10(2) are included in the description of key audit matters below.
We have also addressed the risk of management override of internal controls. This includes consideration of
whether there was evidence of management bias that represented a risk of material misstatement due to
fraud.
THE KEY AUDIT MATTER
HOW THE MATTER WAS ADDRESSED IN THE
AUDIT

Group’s financing – Refer to consolidated cash flow statement, accounting principles for
the consolidated financial statements and notes 22, 23 and 28 to the consolidated financial
statements
— The Group’s and the parent company’s op-
erations have been loss-making in recent
years, which has weakened the company’s
financial status. The Group’s loss for the fi-
nancial year 2024 EUR 0.1 million, de-
creased by EUR 0.8 million compared to
the comparison period.
— Cash flow from operating activities was pos-
itive EUR 0.8 million and remained at the
level of the comparison year 2023. At 31
December 2024, the company had borrow-
ings under the financing agreement
amounting to EUR 1.0 million, of which
EUR 0.5 million was current. At the end of
the financial year, the Group had an unused
credit limit totaling EUR 0.5 million.
— The financing agreement includes cove-
nants based on the company’s EBITDA and
equity ratio. The covenants were fulfilled in
accordance with the financing agreement at
the reporting date 31 December 2024.
— The development of the company’s busi-
ness, profitability and financial status is one
of the key areas that our audit is focused on.
Our audit procedures included, among others:
— To assess the sufficiency of financing, we an-
alysed the company’s financial status as well
as the business and cash flow estimates pre-
pared by management.
— We considered the impact on the company’s
financial status of the fulfilment of the cove-
nants in the financing agreement.
— As part of our year-end audit procedures, we
assessed the accuracy of classification of fi-
nancial liabilities and considered the ade-
quacy and appropriateness of the disclo-
sures provided on the financial status in the
consolidated financial statements.


Graphics
QPR Software Plc
Auditor’s Report
for the year ended 31 December 2024




3
Valuation of capitalised product development costs and valuation of goodwill – Refer to ac-
counting principles of the consolidated financial statements and notes 8, 9, 13 and 14 to the
consolidated financial statements
— The Group companies develop software and
consulting service products to be used by
their customers. The development expendi-
tures are capitalized to the extent that they
meet the capitalization criteria set out in the
relevant accounting standard (IAS 38) and
are assessed to contribute future economic
benefits. The assessment may change even
in a rather short term, e.g. as a result of tech-
nical development.
— The total product development costs capital-
ized in the financial year ended amounted to
EUR 0.3 million. The capitalized product de-
velopment costs are amortized over four
years on a straight-line basis. At the year-end
2024, the capitalized product development
costs amounted to EUR 1.6 million. The cap-
italized product development costs represent
400 percent of the consolidated equity.
— Goodwill totalled EUR 0.4 million at the finan-
cial year-end 2024 and represented 89 per-
cent of the consolidated equity.
— Goodwill and capitalized product develop-
ment costs are tested at least annually for im-
pairment.
— The preparation of the cash flow projections
underlying the impairment tests requires
management judgement in regard to e.g.
sales growth, profitability, terminal growth
and discount rates.
— Due to the significant carrying amounts and
management judgment involved in determin-
ing recoverable amounts and useful life, the
valuation of capitalized product development
costs and goodwill is one of the key areas
that our audit is focused on.
Our audit procedures included, among others:
— We assessed the appropriateness of the
capitalization process and the amortization
periods of development expenditures and
considered whether the development costs
capitalized during the year had met the cap-
italization criteria under the relevant ac-
counting standard.
— We assessed the appropriateness of the im-
pairment test carried out for the goodwill in
the consolidated financial statements.
— Our audit procedures on the impairment
testing included, among others, the follow-
ing: We evaluated the cash flow estimates
for future financial periods prepared by man-
agement and the key assumptions used in
the impairment tests, such as sales growth,
profitability and terminal growth.
— Furthermore, we considered the adequacy
and appropriateness of the Group's notes in
respect of goodwill, testing calculations and
intangible assets.



Graphics
QPR Software Plc
Auditor’s Report
for the year ended 31 December 2024




4

Revenue recognition and valuation of trade receivables – Refer to accounting principles for
the consolidated financial statements and notes 2, 3 and 18 to the consolidated financial
statements
— The consolidated net sales consist of soft-
ware license sales, software maintenance
services, cloud (SaaS) services and consult-
ing services. Revenue is recognized when
(or as) the control of the service is transferred
to the customer, which may be over time or
at a point in time.
— Application of revenue recognition principles
requires management judgement especially
in identifying separate performance obliga-
tions, determining stand-alone selling price
as well as in analysing terms and conditions
of the contract to determine the appropriate
timing to recognize revenue.
— The revenue recognition principles and their
consistent application have a significant im-
pact on the net sales and profitability as re-
ported by QPR Software Plc. Therefore, rev-
enue recognition is one of the key areas that
our audit is focused on.
— Trade receivables were in total EUR 2.0 mil-
lion on 31 December 2024, representing a
significant part of the balance sheet. Regard-
less the fact that there is no significant credit
losses incurred in the past, there may be val-
uation risk associated with trade receivables.
Due to the significance of the carrying
amount of the trade receivables, the valua-
tion and monitoring of trade receivables is
one of the key areas that our audit is focused
on.
Our audit procedures included, among others:
— We evaluated the revenue recognition prin-
ciples by reference to applicable financial re-
porting standards and contract terms.
— Our audit procedures included testing of key
controls designed to ensure the complete-
ness and accuracy of net sales.
— We completed detailed audit procedures
over revenue contracts that we selected
based on size, timing and complexity. In re-
spect of the selected contracts, we as-
sessed the identification of performance ob-
ligations, tested the accuracy of invoicing
and compared revenue transactions rec-
orded with contractual terms and traced
them to supporting evidence of delivery.
— We evaluated the monitoring routines for
trade receivables and the effectiveness of
the key internal controls. We also analyzed
trade receivables and followed up the pay-
ments received after year-end 2024 in re-
spect of selected trade receivables.
— In addition, we assessed the adequacy and
accuracy of disclosures related to revenue
recognition and trade receivables in the con-
solidated financial statements.
Responsibilities of the Board of Directors and the Managing Director for the Financial Statements
The Board of Directors and the Managing Director are responsible for the preparation of consolidated financial
statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the
EU, and of financial statements that give a true and fair view in accordance with the laws and regulations
governing the preparation of financial statements in Finland and comply with statutory requirements. The
Board of Directors and the Managing Director are also responsible for such internal control as they determine

Graphics
QPR Software Plc
Auditor’s Report
for the year ended 31 December 2024




5
is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the Board of Directors and the Managing Director are responsible for
assessing the parent company’s and the group’s ability to continue as a going concern, disclosing, as appli-
cable, matters relating to going concern and using the going concern basis of accounting. The financial state-
ments are prepared using the going concern basis of accounting unless there is an intention to liquidate the
parent company or the group or cease operations, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with good auditing practice will always detect a material misstatement when it exists. Misstate-
ments 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 the financial
statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
— Identify and assess the risks of material misstatement of the financial statements, 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 our opinion. The risk of not detecting a material mis-
statement 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 internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effective-
ness of the parent company’s or the group’s internal control.
— Evaluate the appropriateness of accounting policies used and the reasonableness of accounting esti-
mates and related disclosures made by management.
— Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of the going
concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the parent company’s or the
group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the financial statements or,
if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evi-
dence obtained up to the date of our auditor’s report. However, future events or conditions may cause
the parent company or the group to cease to continue as a going concern.
— Evaluate the overall presentation, structure and content of the financial statements, including the disclo-
sures, and whether the financial statements represent the underlying transactions and events so that
the financial statements give a true and fair view.
— Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business units within the group as a basis for forming an opinion on the
group financial statements. We are responsible for the direction, supervision and review of the audit
work performed for purposes of the group audit. We remain solely responsible for our audit opinion.

Graphics
QPR Software Plc
Auditor’s Report
for the year ended 31 December 2024




6
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were
of most significance in the audit of the financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not
be communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.
Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors by the Annual General Meeting 2006, and our appointment represents a
total period of uninterrupted engagement of 19 years.
Other Information
The Board of Directors and the Managing Director are responsible for the other information. The other infor-
mation comprises the report of the Board of Directors and the information included in the Annual Report, but
does not include the financial statements or our auditor’s report thereon. We have obtained the report of the
Board of Directors prior to the date of this auditor’s report, and the Annual Report is expected to be made
available to us after that date.

Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
With respect to the report of the Board of Directors, our responsibility also includes considering whether the
report of the Board of Directors has been prepared in compliance with the applicable provisions.
In our opinion, the information in the report of the Board of Directors is consistent with the information in the
financial statements and the report of the Board of Directors has been prepared in compliance with the appli-
cable provisions.
If, based on the work we have performed on the other information that we obtained prior to the date of this
auditor’s report, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
Helsinki 14 February 2025
KPMG OY AB

PETRI KETTUNEN
Authorised Public Accountant, KHT

Graphics


KPMG Oy Ab
Töölönlahdenkatu 3 A
PO Box 1037
00101 Helsinki
FINLAND

Telephone +358 20 760 3000
www.kpmg.fi

KPMG Oy Ab, a Finnish limited liability company and a member firm of the KPMG global organization of independent member firms
affiliated with KPMG International Limited, a private English company limited by guarantee.

Business ID 1805485-9
Domicile Helsinki
Independent auditor's report on the ESEF financial
statements of QPR Software Plc
To the Board of Directors of QPR Software Plc
We have performed a reasonable assurance engagement on the financial statements
7437003V4S76KM56UW70-2024-12-31-en.zip of QPR Software Plc (Business ID 0832693-7) that have been
prepared in accordance with the Commission's regulatory technical standard for the financial year ended
31.12.2024.
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 company's report
of the Board of Directors and financial statements (the ESEF financial statements) in such a way that they
comply with the requirements of the Commission's regulatory technical standard. This responsibility includes:
— preparing the ESEF financial statements in XHTML format in accordance with Article 3 of the
Commission's regulatory technical standard
— tagging the primary financial statements, notes and company's identification data in the consolidated
financial statements that are included in the ESEF financial statements with iXBRL tags in accordance
with Article 4 of the Commission's regulatory technical standard and
— ensuring the consistency between the ESEF financial statements and the audited financial statements.
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 ESEF financial statements in accordance with the
requirements of the Commission's regulatory technical standard.
Auditor’s independence and quality management
We are independent of the company in accordance with the ethical requirements that are applicable in Finland
and are relevant to the engagement we have performed, and we have fulfilled our other ethical responsibilities
in accordance with these requirements.
The auditor applies International Standard on Quality Management (ISQM) 1, which requires the firm to
design, implement and operate a system of quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.
Auditor’s responsibilities
Our responsibility is to, in accordance with Chapter 7, Section 8 of the Securities Markets Act, provide
assurance on the financial statements that have been prepared in accordance with the Commission's
regulatory technical standard. We express an opinion on whether the consolidated financial statements that
are included in the ESEF financial statements have been tagged, in all material respects, in accordance with
the requirements of Article 4 of the Commission's regulatory technical standard.
Our responsibility is to indicate in our opinion to what extent the assurance has been provided. We conducted
a reasonable assurance engagement in accordance with International Standard on Assurance Engagements
(ISAE) 3000.
The engagement includes procedures to obtain evidence on:
— whether the primary financial statements in the consolidated financial statements that are included in the
ESEF financial statements have been tagged, in all material respects, with iXBRL tags in accordance with
the requirements of Article 4 of the Commission's regulatory technical standard and

Graphics
QPR Software Plc
Independent auditor's report on the ESEF financial statements





2
— whether the notes and company's identification data in the consolidated financial statements that are
included in the ESEF financial statements have been tagged, in all material respects, with iXBRL tags in
accordance with the requirements of Article 4 of the Commission's regulatory technical standard and
— whether there is consistency between the ESEF financial statements and the audited financial statements.
The nature, timing and extent of the selected procedures depend on the auditor’s judgment. This includes an
assessment of the risk of a material deviation due to fraud or error from the requirements of the Commission's
regulatory technical standard.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Opinion
Our opinion pursuant to Chapter 7, Section 8 of the Securities Markets Act is that the primary financial
statements, notes and company's identification data in the consolidated financial statements that are included
in the ESEF financial statements of QPR Software Plc 7437003V4S76KM56UW70-2024-12-31-en.zip for the
financial year ended 31.12.2024 have been tagged, in all material respects, in accordance with the
requirements of the Commission's regulatory technical standard.
Our opinion on the audit of the consolidated financial statements of QPR Software Plc for the financial year
ended 31.12.2024 has been expressed in our auditor's report dated 14.2.2025. With this report we do not
express an opinion on the audit of the consolidated financial statements nor express another assurance
conclusion.
Helsinki 3 April 2025
KPMG OY AB


Petri Kettunen
Authorised Public Accountant, KHT