===== SIDA 1 ===== BACTIGUARD HOLDING AB | BACTIGUARD.COM INTERIM REPORT FIRST QUARTER 2024 Strategic transformation concluded and new leadership in place First quarter 2024 (January – March) • Total revenue amounted to SEK 58.8 (61.2) million, a decrease of SEK 2.4 million, corresponding to 3.9%. • Net sales amounted to SEK 53.9 (55.6) million, a decrease of SEK 1.7 million, corresponding to 3.1%. Adjusted for currency effects of SEK 0.2 million, net sales decreased by 3.5%. • Operating loss amounted to SEK 12.9 (18.7) million. • EBITDA amounted to SEK -1.5 (-6.6) million. • Net loss for the period amounted to SEK 9.9 (22.1) million. • Loss per share, before and after dilution1, amounted to SEK 0.28 (0.63). • Cash flow from operating activities amounted to SEK -19.1 (-7.7) million, corresponding to SEK -0.54 (-0.22) per share. 1 Defined according to IFRS. 2 Alternative performance measure. For definition and reconciliation, see pages 14-15. Key figures Full year RTM 2024 2023 2023 2023/24 Total revenue¹,MSEK 58.8 61.2 223.2 220.8 Operating profit/loss¹,MSEK -12.9 -18.7 -131.9 -126.1 EBITDA²,MSEK -1.5 -6.6 -76.1 -71.0 EBITDA margin²,% -2.6 -10.8 -34.1 -32.1 Net profit/loss for the period¹,MSEK -9.9 -22.1 -138.4 -126.2 Earnings per share¹,SEK -0.28 -0.63 -3.95 -3.60 Cash flow from operating activities ¹,MSEK -19.1 -7.7 -52.3 -63.7 Cash flow from operating activities, per share²,SEK -0.54 -0.22 -1.49 -1.82 Equity ratio²,% 51.3 60.2 53.3 51.3 Net debt²,MSEK 145.7 55.4 109.9 145.7 Jan-Mar ===== SIDA 2 ===== INTERIM REPORT FIRST QUARTER 2024 | 2 CEO statement Strategic transformation concluded and new leadership in place Total revenue for Q1 2024 amounted to SEK 58.8 million (Q1 2023: SEK 61.2 million) and the EBITDA to SEK -1.5 million (Q1 2023: SEK -6.6 million), both in line with expectations following the strategic transformation activities. Costs for Q1 2024 are in control with a total OPEX of SEK -48.8 million (Q1 2023: SEK -53.6 million). The journey continues with the new Bactiguard The activities related to one of the biggest strategic shifts in Bactiguard’s history, announced in Q3 2023, were concluded in Q1. We are well underway evolving into a knowledge and specialist organization, and now focus on license partnerships and our Wound Management business. It is an honor to be entrusted with leading the new Bactiguard and continue our journey towards our vision of becoming the global standard of care to prevent medical device related infections. I am grateful for the support from our strong Board of Directors and pending the outcome of the Annual General Meeting in May, I look forward to working together with Thomas von Koch as Chairman and Christian Kinch as a Senior Advisor to Bactiguard. Financial results in line with expectations The Q1 financial results are in line with our expectations following the strategic shift. We are on track to deliver cost savings from the transformation exceeding SEK 25 million on a yearly basis. Total cash flow for the period amounted to SEK -31.6 million, which relates primarily to increases in accounts receivable of SEK 16.0 million and investments of SEK 6.2 million. Accounts receivable as of the end of Q1 are attributable to invoiced and not overdue amounts with our long-standing partners. Investments relate to the new production and lab facilities in Markaryd, the move of the head office to Stockholm, and digital systems. During Q1, we continued to strengthen our ties with Beckton Dickinson & Company (BD). The transition process is ongoing related to the agreement announced in December 2023 for additional markets for Bactiguard coated Foleys. During 2024, market demand for Bactiguard coated Foleys may be met by either BD or Bactiguard. Bactiguard obtained MDR approval for the coated silicone urinary catheter in Q1, which is an important milestone as this will support BD’s go-to-market strategy in Europe. Revenues from the BD partnership were stable at SEK 28.0 million for Q1 (Q1 2023: SEK 36.3 million) and we remain confident about its potential. The collaboration with Zimmer Biomet is making progress and revenues for Q1 amounted to SEK 3.2 million (Q1 2023: SEK 1.8 million). Following the launch in 2023 of the trauma nail ZNN Bactiguard across the European markets, the demand continues to increase, however uptake is at a slower pace than originally expected. Zimmer Biomet has informed us that there is a strong interest among clinicians and the need for infection prevention is clearly getting attention. In addition, ZNN Bactiguard is expected to be launched in Japan late Q2. In our efforts to provide better financial transparency on progress in partnerships with our infection prevention technology, as of Q1 2024 we will divide revenues into license partnerships, exclusivity partnerships and application development partnerships. In addition, we will report Wound Management and the BIP portfolio separately. For BIP, revenues in Q1 were positively impacted by the phase-out sales and amounted to SEK 6.0 million (Q1 2023: SEK 5.1 million). For the Wound Management business, revenues for Q1 came in at SEK 12.7 million (Q1 2023: SEK 11.2 million). Outlook – 2024 characterized by transition While the strategic transformation has been concluded, 2024 will be characterized by transition and still be influenced by the Foley market transfer to BD and other out-licensing activities. Our dialogue with various parties to license out Bactiguard’s central venous catheters and endotracheal tubes continues but, as previously stated, we expect this to have limited impact in 2024. In the dental area, conversations are ongoing with leading dental organizations and interest remains strong thanks to the clinical evidence supporting the efficacy of our technology. With the license-focused strategy, both revenues and margins are expected to increase as we expand our infection technology through partnerships. I am fully aware of the challenges Bactiguard has had in the past. Our top priority ahead is to truly seize the USD 80 billion opportunity presented within the strategic therapeutic areas we have defined as key for our infection prevention technology. We are set to scale up in a cost-effective manner and create profitable and sustainable growth for the new Bactiguard. Christine Lind, CEO ===== SIDA 3 ===== INTERIM REPORT FIRST QUARTER 2024 | 3 Business model Bactiguard is a global MedTech company developing safe and biocompatible technology to prevent medical device related infections. The company’s unique technology is based on an ultra-thin noble metal coating that prevents bacterial adhesion and biofilm formation on medical devices. Bactiguard’s infection prevention solutions decrease patient suffering, save lives, and unburden healthcare resources while also fighting against antimicrobial resistance, one of the most serious threats to global health and modern medicine. Bactiguard operates through license partnerships with leading global MedTech companies that apply the technology to their medical devices and sell them under their own brand or co-branded with Bactiguard. The company also has a portfolio of wound management products. Three partnership phases Bactiguard’s revenues have two main components: firstly, charging license partners for the right to use our coating technology on their medical devices within a specific application and geographical area, and secondly, royalties; a variable remuneration once the license partners’ products reach the market. Bactiguard’s business model is scalable and has a high-margin potential. The revenues are generated across three phases of partnerships: application development partners, exclusivity partners and license partners. An application development partner participates in a development project where we test the coating technology to different medical devices, surfaces, and materials. Bactiguard’s coating development team works in close collaboration with the partner. Some application development projects will not materialize and this is a natural part of our business. An exclusivity partner gets an exclusive right to apply our coating technology to a certain medical device but has no products in the market yet, for instance due to pending regulatory approvals. Zimmer Biomet (their broader orthopedics portfolio) is an example of an exclusivity partner. A license partner has the right to market and sell medical devices with Bactiguard’s coating technology, in a certain region or globally. Most of our revenues are generated through partnerships at this phase. BD and Zimmer Biomet (their trauma implant ZNN Bactiguard) are examples of license partners. Not all partnerships will follow all three phases. An agreement with a partner can generate revenues from different phases and streams simultaneously. Partnerships Application area Market* Becton Dickinson & Company (BD) Urinary catheters (Foley) Global excl. China Zimmer Biomet Trauma implants Global excl. Southeast Asia, China, India, and South Korea Zimmer Biomet Orthopedic implants Global excl. Southeast Asia, China, India, and South Korea. Well Lead Medical Urinary catheters China *Black: With approved products on these markets, Green = rights. ===== SIDA 4 ===== INTERIM REPORT FIRST QUARTER 2024 | 4 Development in the first quarter Revenue Total revenue for the first quarter amounted to SEK 58.8 (61.2) million, a decrease of SEK 2.4 million, corresponding to 3.9 percent. Adjusted for currency effects of SEK 3.0 million, revenue decreased by 8.8 percent. Net sales amounted to SEK 53.9 (55.6) million, a decrease of SEK 1.7 million, corresponding to 3.1 percent. Adjusted for currency effects of SEK 0.2 million, net sales decreased by 3.5 percent. Total license revenue amounted to SEK 35.1 (39.4) million, a decrease of SEK 4.2 million, corresponding to 10.8 percent. Adjusted for currency effects of SEK 0.2 million, license revenues decreased by 11.2 percent. Revenues from Becton Dickinson & Company (BD) amounted to SEK 28.0 (36.3) million, a decrease of SEK 8.2 million, corresponding to 22.7 percent. Adjusted for currency effects of SEK 0.2 million, revenues from BD decreased by 23.1 percent. Revenues from Zimmer Biomet amounted to SEK 3.2 (1.8) million, an increase of SEK 1.4 million. Revenues from license partners amounted to SEK 32.4 (37.7) million, a decrease of SEK 5.3 million, corresponding to 13.9 percent. Adjusted for currency effects of SEK 0.2 million, revenues from license partners decreased by 14.4 percent. Revenues from exclusivity partners amounted to SEK 2.6 (0.0) million, an increase of SEK 2.6 million. Revenues from application development partners amounted to SEK 0.1 (1.7) million, a decrease of SEK 1.6 million, corresponding to 92.3 percent with and without currency effects. Revenues from Wound Management portfolio amounted to SEK 12.7 (11.2) million, an increase of SEK 1.6 million, corresponding to 14.0 percent with and without currency effects. Revenues from the BIP portfolio amounted to SEK 6.0 (5.1) million, an increase of SEK 1.0 million, corresponding to 18.7 percent. Adjusted for currency effects of SEK 0.1 million, revenues from the BIP portfolio increased by 17.6 percent. The BIP portfolio revenue growth is mainly due to the portfolio’s end-of-life sales. Other revenues amounted to SEK 4.9 (5.5) million, a decrease of SEK 0.6 million, corresponding to 11.7 percent. Currency effects amounted to SEK 2.8 (3.6) million and the remaining revenue primarily relates to rent income. Result Costs for raw materials and consumables for the first quarter amounted to SEK -11.5 (-14.1) million, a decrease of SEK 2.7 million, corresponding to 18.9 percent. Other external costs amounted to SEK -18.8 (-23.1) million, a decrease of SEK 4.3 million, corresponding to 18.7 percent. Personnel costs amounted to SEK -29.4 (-26.9) million, an increase of SEK 2.5 million, corresponding to 9.4 percent. Other operating expenses are related to currency exchange losses/gains, which amounted to SEK -0.7 (-3.7) million. In total operating expenses (OPEX) amounted to SEK -48.8 (-53.6) million, a decrease of SEK 4.8 million, corresponding to 8.9 percent. The operating loss amounted to SEK 12.9 (18.7) million, a decrease of SEK 5.8 million, corresponding to 31.2 percent. EBITDA for the first quarter amounted to SEK -1.5 (-6.6) million, an increase of SEK 5.1 million. EBITDA margin was -2.6 (-10.8) percent. Full year RTM MSEK 2024 2023 2023 2023/24 Total license revenue 35.1 39.4 117.2 113.0 License partners 32.4 37.7 104.3 99.1 Exclusivity partners 2.6 - 9.7 12.3 Application development partners 0.1 1.7 3.2 1.6 Wound Management portfolio 12.7 11.2 53.8 55.4 BIP portfolio 6.0 5.1 30.5 31.5 Net sales 53.9 55.6 201.5 199.8 Other operating revenues 4.9 5.5 21.6 21.0 Total revenue 58.8 61.2 223.2 220.8 Jan-Mar ===== SIDA 5 ===== INTERIM REPORT FIRST QUARTER 2024 | 5 Depreciation and amortisation amounted to SEK -11.4 (-12.1) million, a decrease of SEK 0.7 million, corresponding to 6.0 percent. Amortization of intangible assets amounted to SEK -6.8 (-8.3) million, attributable primarily to amortization of SEK -6.4 (-6.4) million related to Bactiguard’s technology. Depreciation of fixed assets amounted to SEK -4.5 (-3.8) million, primarily attributable to depreciation on leasing of SEK -3.6 (-2.8) million. Financial items amounted to SEK 0.7 (-3.7) million. Financial income amounted to SEK 4.5 (1.9) million which pertained mainly to exchange rate effects. Financial expenses amounted to SEK -3.9 (-5.6) million which mainly pertained to interest expenses of SEK -3.6 (-2.9) million. Tax for the period amounted to SEK 0.0 (0.2) million. Change in deferred tax amounted to SEK 2.3 (0.1) million attributable to the intangible assets and leases, which is calculated at the Swedish tax rate of 20.6 percent. Income tax in foreign subsidiaries is calculated on the basis of a tax rate of 24.0 percent. Net loss for the first quarter of 2024 amounted to SEK 9.9 (22.1) million. Cash flow Cash flow from operating activities for the quarter amounted to SEK -19.1 (-7.7) million. This is mainly attributable to change in working capital of SEK -11.3 (4.9) million, including change in accounts receivable of SEK -16.0 (7.0) million, driven by outstanding amounts, yet not overdue in the quarter, with our long-standing partners. Cash flow from investing activities amounted to SEK -6.2 (-1.2) million. This is mainly attributable to investments in tangible assets of SEK -6.2 (-0.7) million, including investments in our new sites and digital systems. Cash flow from financing activities for the quarter amounted to SEK -6.3 (-3.0) million. This is mainly attributable to amortization of loan of SEK -3.8 (-0.2) million. Cash flow for the quarter amounted to SEK -31.6 (-11.8) million. Cash and cash equivalents at the end of the period of 31 March 2024 amounted to SEK 95.8 (186.6) million. Financial position Equity on 31 March 2024 amounted to SEK 343 (473) million and net debt to SEK 146 (55) million. The parent company has a credit facility with SEB with a term until May 2025. On 31 March 2024 that credit facility amounted to SEK 171 (171) million. As of 31 March 2024, the overdraft facility from SEB of SEK 30 million was unutilized. Foreign subsidiaries had credit facilities amounting to SEK 3.3 (9.4) million as of 31 March 2024. Total assets on 31 March 2024 amounted to SEK 669 (786) million. Employees Full-time equivalents in the Group during the period January to March averaged to 196 (214) of which 119 (135) are women. On 31 March 2024, the number of full-time equivalents was 191. The share and share capital Bactiguard's B share is listed on Nasdaq Stockholm with the short name "BACTI B". The closing price for the B share was SEK 72.4 (74.0) on 31 March 2024 and the market capitalization amounted to SEK 2,537 (2,593) million. The share capital in Bactiguard on 31 March 2024 amounted to SEK 0.9 (0.9) million divided into 31,043,885 Class B shares with one vote each (31,043,885 votes) and 4,000,000 Class A shares with ten votes each (40,000,000 votes). The total number of shares and votes in Bactiguard on 31 March 2024 was 35,043,885 shares and 71,043,885 votes. ===== SIDA 6 ===== INTERIM REPORT FIRST QUARTER 2024 | 6 Ownership * Of which 1,785,384 of SEB Life International Assurance relates to capital insurance for companies controlled by Thomas von Koch. Note that these do not have voting rights. Per 31 March 2024 Bactiguard had 3,260 (3,585) shareholders. Key events Key events during the quarter Christine Lind appointed new CEO. Agreement with Dentsply Sirona not to pursue the application development project further due to changed priorities at Dentsply Sirona. Hydrocyn aqua received approval from the Central Drugs Standard Control Organization (CDSCO) to start commercialization in India. Bactiguard obtained MDR approval for the coated silicone urinary catheter, which will support BD’s go-to-market strategy in Europe. Key events after the end of the quarter Christine Lind assumed the role as CEO per 12 April 2024, just over a month earlier than previously communicated. The Nomination Committee announced ahead of the Annual General Meeting 2024 that Christian Kinch will assume a role as Senior Advisor to Bactiguard and has declined re-election to the Board of Directors. Thomas von Koch is suggested to be re-elected as Chairman of the Board of Directors. Financial targets The company’s financial targets relate to growth and profitability and are expected to be delivered by year-end 2028. The financial and strategic targets should not be perceived as a forecast but rather reflect what Bactiguard’s Board of Directors and Executive Management consider to be reasonable mid-term expectations given the sharpened license focused strategy. Growth Net sales in excess of SEK 1,000 million. Profitability EBITDA of SEK 500 million. Application areas 10 application areas in license partnership with products in the market. Shareholders No. of A shares No. of B shares Total number % of capital % of votes Thomas von Koch and company* 2,000,000 4,443,787 6,443,787 18.4 34.4 Christian Kinch with family and company 2,000,000 4,179,326 6,179,326 17.6 34.0 Jan Ståhlberg 3,605,150 3,605,150 10.3 5.1 Nordea Investment Funds 3,524,877 3,524,877 10.1 5.0 The Fourth Swedish National Pension Fund 3,370,992 3,370,992 9.6 4.7 Handelsbanken Fonder 2,267,593 2,267,593 6.5 3.2 SEB Life International Assurance* 1,864,884 1,864,884 5.3 2.6 AMF - försäkring och fonder 1,706,340 1,706,340 4.9 2.4 Avanza Pension 1,144,711 1,144,711 3.3 1.6 Lancelot Avalon Master 491,042 491,042 1.4 0.7 Total, major shareholders 4,000,000 26,598,702 30,598,702 87.3 93.7 Total, others 4,445,183 4,445,183 12.7 6.3 Total number of shares 4,000,000 31,043,885 35,043,885 100.0 100.0 ===== SIDA 7 ===== INTERIM REPORT FIRST QUARTER 2024 | 7 Other information Accounting and valuation principles The consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS). The interim report has been prepared in accordance with IAS 34 Interim Reporting and the Annual Accounts Act. Disclosures in accordance with IAS 34 Interim Reporting are submitted both in notes and elsewhere in the interim report. The parent company’s financial statements have been prepared in accordance with the Annual Accounts Act and the Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities. Accounting and valuation principles are stated in the annual report 2023. The accounting principles are unchanged from previous periods, except for a new assessment model of clients’ risk classification, where more clients are assessed individually as a consequence of the change. Segment reporting An operating segment is a component of an entity that engages in business activities from which it may derive revenues and incur expenses, whose operating results are regularly reviewed by the chief operating decision maker and for which there is separate financial information. The company's reporting of operating segments is consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker is the function that assesses the operating segment performance and decides how to allocate resources. The company has determined that the Group’s executive management constitutes of the chief operating decision maker. The company is considered in its entirety to operate within one business segment. Parent company During the period, the parent company received interest on its receivables from group companies. No investments were made during the period. Risk factors Companies within the Group are exposed to various types of risk through their activities. Bactiguard continually engages in a process of identifying all risks that may arise and assessing how each of these risks shall be managed. The Group is working to create an overall risk management program that focuses on minimizing potential adverse effects on the company's financial results. The company is primarily exposed to market related risks, operational risks and financial risks. A description of these risks can be found on page 16 and 45–47 in the annual report 2023. The geopolitical situation and macro trends In addition to identified risks, the macro situation and its impact is continuously monitored. The global healthcare challenges have a significant impact on society. The need for more efficient and safe healthcare is driven by both economic and demographic developments, as well as increased political unrest, conflicts, wars, and natural disasters. Particularly prominent are healthcare-associated infections and antimicrobial resistance where we see an increased interest in infection prevention. Bactiguard does not have suppliers in or sales to any of Russia, Belarus, or Ukraine. However, the global economy is affected by the situation of the war, and we follow developments closely and continuously evaluate the operational and financial effects as the global situation may change and affect the company's financial position. Bactiguard has a subsidiary in Israel. We are closely following the developments there and our primary focus is to ensure the staff’s well-being and security. We make the assessment that the conflict in Israel will have a negligible effect on the group’s result and financial position. Inflation and higher prices on electricity for instance affect the company negatively and it is not always possible to change the price to the customers, all of which can affect the financial position negatively. The high inflation has caused the interest rates to rise, which will negatively impact interest costs. Some countries are now in or close to recession, which can lead to a decreased ability for customers to pay their invoices. The company also has a large exposure to the USD and EUR, see the annual report 2023. ===== SIDA 8 ===== INTERIM REPORT FIRST QUARTER 2024 | 8 Group consolidated income statement Condensed statement of comprehensive income Full year RTM TSEK Note 2024 2023 2023 2023/24 Revenues 1 Net sales 53,926 55,648 201,545 199,824 Other operating revenue 4,867 5,511 21,628 20,985 Sum 58,793 61,159 223,174 220,809 Change in inventory of finished goods and products in progress 28 - 1,000 1,028 Capitalized production - - 563 563 Raw materials and consumables -11,475 -14,146 -65,572 -62,901 Other external expenses -18,751 -23,053 -97,854 -93,552 Personnel costs -29,375 -26,858 -123,456 -125,973 Depreciation and amortization -11,366 -12,090 -55,865 -55,141 Other operating expenses -721 -3,719 -13,923 -10,925 Sum -71,660 -79,866 -355,107 -346,901 Operating profit/loss -12,867 -18,707 -131,933 -126,093 Profit/loss from financial items Financial income 4,536 1,945 13,428 16,019 Financial expenses -3,869 -5,634 -28,649 -26,884 Sum 667 -3,690 -15,221 -10,865 Profit/loss before tax -12,200 -22,396 -147,154 -136,958 Current tax - 169 -136 -306 Deferred tax 2,299 128 8,908 11,077 NET PROFIT/LOSS FOR THE PERIOD -9,901 -22,099 -138,382 -126,187 Attributable to: The parent company´s shareholders -9,901 -22,099 -138,382 -126,187 Earnings per share, before and after dilution, SEK -0.28 -0.63 -3.95 -3.60 Jan-Mar Net profit/loss for the period -9,901 -22,099 -138,382 -126,187 Other comprehensive income: Items that will not be reclassified to profit or loss for the year - - - - Items that will be reclassified to profit or loss for the year Translation differences 127 -386 -4,149 -3,636 Other comprehensive income, after tax 127 -386 -4,149 -3,636 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -9,774 -22,485 -142,531 -129,823 Attributable to: The parent company´s shareholders -9,774 -22,485 -142,531 -129,823 Number of shares at the end of period ('000) 35,044 35,044 35,044 35,044 Weighted average number of shares ('000) 35,044 35,044 35,044 35,044 ===== SIDA 9 ===== INTERIM REPORT FIRST QUARTER 2024 | 9 Group condensed statement of financial position TSEK Note 2024-03-31 2023-03-31 2023-12-31 ASSETS Non-current assets Intangible fixed assets Goodwill 249,091 250,254 248,103 Technology 66,903 92,487 73,304 Brands 25,691 25,840 25,729 Customer relationships 4,740 6,211 5,107 Capitalized development expenditure 2,953 12,091 2,953 Patents 1,244 1,303 1,345 Sum 350,622 388,186 356,541 Tangible assets Right of use lease assets 62,567 58,780 50,426 Buildings 23,739 14,937 13,766 Improvements, leasehold 8,913 5,718 4,991 Machinery and other technical plant 6,886 17,749 15,583 Equipment, tools and installations 10,200 5,604 9,092 Sum 112,305 102,788 93,858 Financial assets Other non-current accounts receivable 3,053 1,299 2,885 Sum 3,053 1,299 2,885 Deferred tax assets 11,735 1,901 10,763 Total non-current assets 477,715 494,174 464,047 Current assets Inventories 29,337 43,045 29,646 Accounts receivable 33,647 39,970 17,249 Other current receivables 2 10,382 8,479 8,118 Prepaid expenses and accrued income 22,508 13,206 19,898 Cash and cash equivalents 95,839 186,648 123,217 Total current assets 191,713 291,348 198,127 TOTAL ASSETS 669,428 785,522 662,174 EQUITY AND LIABILITIES Equity attributable to shareholders of the parent Share capital 876 876 876 Translation reserve -728 2,908 -855 Other capital 930,680 930,680 930,680 Retained earnings including net profit for the period -587,424 -461,240 -577,523 Total equity 343,404 473,224 353,178 Non-current liabilities Liabilities to credit institutions 170,940 179,220 - Leasing liability 50,668 50,629 42,306 Provisions 5,257 - 5,257 Other long-term liabilities 125 - 28 Total non-current liabilities 226,990 229,849 47,590 Current liabilities Liabilities to credit institutions 3,870 - 178,569 Leasing liability 16,051 12,155 12,224 Accounts payable 19,757 30,491 16,695 Provisions 9,568 - 10,256 Other current liabilities 2 3,004 5,743 4,570 Accrued expenses and prepaid income 46,784 34,060 39,093 Total current liabilities 99,034 82,449 261,406 TOTAL LIABILITIES 326,024 312,298 308,996 TOTAL EQUITY AND LIABILITIES 669,428 785,522 662,174 ===== SIDA 10 ===== INTERIM REPORT FIRST QUARTER 2024 | 10 Group condensed statement of changes in equity TSEK Share capital Other capital Reserves Retained earnings including net profit for the period Total equity Opening balance 2023-01-01 876 930,680 3,294 -439,141 495,709 Adjustment of equity for previous year Net profit/loss for the period -22,099 -22,099 Other comprehensive income: Translation differences -386 -386 Total comprehensive income after tax -386 -22,099 -22,485 Closing balance 2023-03-31 876 930,680 2,908 -461,240 473,224 Opening balance 2024-01-01 876 930,680 -855 -577,523 353,178 Net profit/loss for the period -9,901 -9,901 Other comprehensive income: Translation differences 127 127 Total comprehensive income after tax 127 -9,901 -9,774 Closing balance 2024-03-31 876 930,680 -728 -587,424 343,404 ===== SIDA 11 ===== INTERIM REPORT FIRST QUARTER 2024 | 11 Group condensed statement of cash flows Full year RTM TSEK Note 2024 2023 2023 2023/24 Net profit/loss for the period -9,901 -22,099 -138,382 -126,184 Adjustments for depreciation and amortization and other non-cash items 2,101 9,469 72,288 64,920 Increase/decrease inventory 1,178 456 8,252 8,974 Increase/decrease accounts receivable -15,987 7,020 28,455 5,448 Increase/decrease other current receivables -5,044 -1,355 -10,450 -14,139 Increase/decrease accounts payable 3,063 -3,245 -17,127 -10,819 Increase/decrease other current liabilities 5,535 2,067 4,632 8,100 Cash flow from changes in working capital -11,256 4,943 13,762 -2,437 Cash flow from operating activities -19,056 -7,687 -52,331 -63,701 Investments in intangible assets - -424 -1,420 -996 Investments in tangible assets -6,225 -735 -7,189 -12,679 Cash flow from investing activities -6,225 -1,159 -8,609 -13,674 Amortization of financial leasing liability -2,575 -3,839 -11,139 -9,875 Amortization of loan -3,759 -159 -696 -4,296 Change in bank overdraft - 922 - -922 Other financing activities - 74 - -74 Cash flow from financing activities -6,334 -3,002 -11,835 -15,167 Cash flow for the period -31,615 -11,848 -72,775 -92,542 Cash and cash equivalents at the beginning of the period 123,217 197,727 197,727 186,648 Exchange difference in cash and cash equivalents 4,237 770 -1,735 1,731 Cash and cash equivalents at end of period 95,839 186,648 123,217 95,839 Jan-Mar ===== SIDA 12 ===== INTERIM REPORT FIRST QUARTER 2024 | 12 Condensed parent company income statement The parent company presents no separate statement of comprehensive income since the company has no items in 2024 or 202 3 recognized in other comprehensive income. Net profit/loss for the period for the parent company thereby also constitutes of the comprehensive income for the period. 2023 2023/24 TSEK Note 2024 2023 Full year RTM Net sales - 846 3,062 2,216 Sum - 846 3,062 2,216 Other external expenses -1,841 -733 -3,176 -4,284 Personnel costs -783 -886 -3,295 -3,192 Sum -2,624 -1,620 -6,471 -7,476 Operating profit/loss -2,624 -774 -3,409 -5,260 Interest income and similar profit/loss items 5,461 4,067 19,625 21,019 Interest expenses and similar profit/loss items -3,175 -2,524 -12,016 -12,667 Sum 2,286 1,544 7,609 8,352 Income after financial items -338 770 4,200 3,092 Deferred tax - - 10 10 Net profit/loss for the period -338 770 4,210 3,102 Jan-Mar ===== SIDA 13 ===== INTERIM REPORT FIRST QUARTER 2024 | 13 Condensed parent company balance sheet TSEK Note 2024-03-31 2023-03-31 2023-12-31 ASSETS Non-current assets Financial assets Shares in subsidiaries 575,191 481,191 575,191 Receivables from group companies 363,791 381,838 368,803 Deferred tax assets 15,255 15,255 15,255 Total non-current assets 954,237 878,283 959,249 Current assets Current receivables Other current receivables 180 31 1,639 Prepaid expenses and accrued income 37,963 17,914 32,806 Sum 38,143 17,945 34,445 Cash and bank balances 1,512 1,811 Total current assets 41,531 19,457 36,256 TOTAL ASSETS 995,768 897,740 995,506 EQUITY & LIABILITIES Equity Restricted equtiy Share capital 876 876 876 Total restricted equity 876 876 876 Non-restricted equity Retained earnings -29,347 694,413 694,413 Non-restricted share premium 727,969 0 0 Net profit/loss for the period -338 770 4,210 Total non-restricted equity 698,284 695,183 698,623 Total equity 699,160 696,059 699,499 Non-current liabilities Liabilities to credit institutions 170,941 170,941 - Total non-current liabilities 170,941 170,941 - Current liabilities Liabilities to credit institutions - - 170,941 Liabilities to group companies 124,000 30,000 124,000 Accounts payable 320 40 86 Other current liabilities 107 369 407 Accrued expenses and prepaid income 1,240 331 572 Total current liabilities 125,667 30,740 296,007 Total liabilities 296,608 201,681 296,007 Total equity and liabilities 995,768 897,740 995,506 ===== SIDA 14 ===== INTERIM REPORT FIRST QUARTER 2024 | 14 Definitions of alternative key performance indicators Bactiguard presents certain financial measures in its annual report that have not been defined in line with IFRS (referred to as alternative key performance indicators as set forth in the ESMA guidelines). It is the opinion of the company that these measures provide useful supplementary information to investors and the company’s management as they allow for the evaluation of the company’s performance. Since not all companies calculate the measures in the same way, these are not always comparable to measures used by other companies. These performance measures should therefore not be considered a substitute for measures as defined under IFRS. The definitions and tables below describe how the performance measures are calculated. The measures are alternative in accordance with ESMA’s guidelines unless otherwise stated. EBITDA EBITDA presents the company’s earning capacity from ongoing operations irrespective of capital structure and tax situation. The key figure is used to facilitate comparisons with other companies in the same industry. The company considers this performance measure to be the most relevant, since the company’s technology is depreciated by large amounts, which does not impact cash flow negatively. Bactiguard’s patented, unique technology can be applied to a broad range of products in the licensing business. The company defines EBITDA as operating profit/loss excluding depreciation and amortization of tangible and intangible assets. EBITDA margin Presents the company’s earning capacity from ongoing operations, irrespective of capital structure and tax situation, in relation to revenues. The key figure is used to facilitate analysis of the company’s result in comparison with comparable companies. Net debt Net debt is a measure used to describe the Group’s indebtedness and its ability to repay its debt with cash generated from the Group’s operating activities if the debts matured today. The company considers this key figure interesting for creditors who want to understand the Group’s debt situation. The company defines net debt as interest-bearing liabilities minus cash and cash equivalents at the end of the period. Full year RTM TSEK 2024 2023 2023 2023/24 Operating profit/loss -12,867 -18,707 -131,933 -126,094 Depreciation 11,366 12,090 55,865 55,141 EBITDA -1,501 -6,617 -76,068 -70,953 Jan-Mar Full year RTM TSEK 2024 2023 2023 2023/24 EBITDA -1,501 -6,617 -76,068 -70,953 Revenues 58,793 61,159 223,174 220,809 EBITDA margin % -2.6 -10.8 -34.1 -32.1 Jan-Mar Full year TSEK 2024 2023 2023 Non-current liabilities to credit institutions 170,940 179,220 - Current liabilities to credit institutions 3,870 - 178,569 Short-term lease debt 50,668 50,629 42,306 Long-term lease debt 16,051 12,155 12,224 Interest-bearing debt 241,529 242,004 233,099 Cash and cash equivalents -95,839 -186,648 -123,217 Net debt 145,690 55,356 109,882 Jan-Mar ===== SIDA 15 ===== INTERIM REPORT FIRST QUARTER 2024 | 15 Equity ratio Equity ratio is a measure the company considers important for creditors who want to understand the company’s long-term ability to pay. The company defines equity ratio as equity and untaxed reserves (less deferred tax), in relation to the balance sheet total. Cash flow from operating activities per share Cash flow per share calculated as the cash flow from operating activities divided by the average number of shares outstanding during the period. The key figure is presented because it is used by analysts and other stakeholders to evaluate the company – it shows operating cash flow per share. Profit/loss from financial items Financial income minus financial expenses. Direct reconciliation against financial report is possible. RTM/Rolling 12 months This performance measure implies the twelve months before and including a certain date. Note 1 Revenue distribution Full year TSEK 2024 2023 2023 Equity 343,404 473,224 353,178 Balance sheet total 669,428 785,522 662,174 Equity ratio, % 51.3 60.2 53.3 Jan-Mar Full year RTM TSEK 2024 2023 2023 2023/24 License partners 32,424 37,678 104,322 99,070 Exclusivity partners 2,591 - 9,710 12,302 Application development partners 131 1,706 3,163 1,588 Wound Management portfolio 12,733 11,170 53,817 55,380 BIP portfolio 6,046 5,094 30,533 31,485 Sum 53,926 55,648 201,545 199,824 Time for revenue recognition Performance commitment is met at a certain time 51,203 53,942 188,672 185,935 Performace commitment is met during a period of time 2,722 1,706 12,873 13,890 Sum 53,926 55,648 201,545 199,824 Jan-Mar ===== SIDA 16 ===== INTERIM REPORT FIRST QUARTER 2024 | 16 Note 2 Financial assets and liabilities at fair value The table below shows the breakdown of financial assets and financial liabilities recognized at fair value in the consolidated balance sheet. Distribution of how fair value is determined is based on three levels. Level 1: according to prices quoted on an active market for the same instrument. Level 2: based on directly or indirectly observable market data not included in level 1. Level 3: based on input data that is not observable on the market. For description of how real values have been calculated, see annual report 2023, note 4. Fair value of financial assets and liabilities is estimated to be substantially consistent with posted values. The group holds derivative instruments for foreign exchange contracts which are recognized at fair value through profit or loss, considering the current exchange rate on the foreign exchange market and the remaining maturity of respective instruments. Quarterly information 2024 2023 2023 TSEK 2024-03-31 2023-03-31 2023-12-31 Derivatives (Level 2) Derivatives (Level 2) Derivatives (Level 2) Assets Other current receivables - - - Liabilities Other current liabilities - 142 - TSEK Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 RTM 23/24 License partners 32,424 29,544 17,960 19,140 37,678 39,856 99,070 Exclusivity partners 2,591 2,639 2,696 4,376 - 787 12,302 Application development partners 131 - 153 1,304 1,706 5,703 1,588 Wound Management portfolio 12,733 13,917 17,501 11,229 11,170 9,823 55,380 BIP portfolio 6,046 10,152 7,148 8,139 5,094 5,106 31,485 Other operating revenues 4,867 5,083 4,029 7,006 5,511 10,901 20,985 Total revenue 58,793 61,334 49,486 51,194 61,159 72,175 220,809 EBITDA -1,501 -4,242 -9,529 -55,681 -6,617 -1,118 -70,953 EBITDA margin (%) -2.6 -6.9 -19.3 -108.8 -10.8 -1.5 -32.1 EBIT -12,867 -23,791 -21,592 -67,844 -18,707 -13,300 -126,094 Net profit/loss for the period -9,901 -27,218 -24,602 -64,464 -22,099 -14,178 -126,185 Earnings per share, before and after dilution, SEK -0.28 -0.78 -0.70 -1.84 -0.63 -0.40 -3.60 Operating cash flow -19,056 10,110 -35,008 -19,746 -7,687 6,963 -63,701 Operating cash flow per share, SEK -0.54 0.29 -1.00 -0.56 -0.22 0.20 -1.82 Net debt 145,690 109,882 111,533 75,794 55,356 40,972 145,690 Total shares (pcs) 35,043,885 35,043,885 35,043,885 35,043,885 35,043,885 35,043,885 35,043,885 ===== SIDA 17 ===== INTERIM REPORT FIRST QUARTER 2024 | 17 Signatories of the report The Board of Directors and the CEO certify that the interim report, to the best of their knowledge, provides a fair overview of the parent company's and the Group's operations, financial position and results and describes the material risks and uncertainties faced by the parent company and the companies included in the Group. Stockholm 25 April 2024 Christian Kinch Thomas von Koch Chairman of the Board Board Member Richard Kuntz Anna Martling Board Member Board Member Magdalena Persson Jan Ståhlberg Board Member Board Member Christine Lind CEO The interim report is not reviewed by the company auditors. This information is information that Bactiguard Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above on 25 April 2024, at 08.00 a.m. CET. This is a translation of the Swedish Interim report. In the event of any discrepancy, the Swedish version applies. ===== SIDA 18 ===== About Bactiguard Bactiguard is a global MedTech company developing safe and biocompatible technology to prevent medical device related infections. The company’s unique technology is based on an ultra-thin noble metal coating that prevents bacterial adhesion and biofilm formation on medical devices. Bactiguard’s infection prevention solutions decrease patient suffering, save lives, and unburden healthcare resources while also fighting against antimicrobial resistance, one of the most serious threats to global health and modern medicine. Bactiguard operates through license partnerships with leading global MedTech companies that apply the technology to their medical devices and sell them under their own brand or co- branded with Bactiguard. The company also has a portfolio of wound management products. Bactiguard is headquartered in Stockholm and listed on Nasdaq Stockholm. Read more about Bactiguard bactiguard.com Follow Bactiguard on LinkedIn Forthcomming disclosures of information 16 July 2024 Half-year report 1 April – 30 June 2024 24 October 2024 Interim report 1 July – 30 September 2024 Contacts For additional information, please contact: Patrick Fruergaard Bach, CFO: +46 8 440 58 80 Nina Nornholm, Head of Communication & Investor Relations: +46 708 550 356