===== SIDA 1 ===== CellaVision Interim Report January-September 2023Q3 Growth and regained momentum in APAC Organic sales growth: Q3, 2023: 11% (-3) EBITDA margin: Q3, 2023: 26% (21) July 1-September 30, 2023 Net sales increased by 19% to SEK 168 m (141). Sales increased organically by 11% (-3), currency effect 8%. EBITDA amounted to SEK 43 m (29). EBITDA margin amounted to 26% (21). Profit before tax amounted to SEK 32 m (13). Earnings per share before and after dilution amounted to SEK 1.09 (0.44). Cash flow from operating activities amounted to SEK 73 m (31). Jul-Sep Jan-Sep Jan-Dec (MSEK) 2023 2022 2023 2022 2022 Net sales 168 141 477 487 639 Gross profit 111 96 327 337 438 EBITDA 43 29 134 150 198 EBITDA margin, % 26 21 28 31 31 Profit/loss before tax 32 13 101 108 148 Earnings per share before and after dilution 1.09 0.44 3.35 3.61 4.96 Cash flow from operating activities 73 31 120 109 137 Total cash flow 44 6 -29 -15 -23 Equity ratio, % 76 70 76 70 72 ===== SIDA 2 ===== CellaVision Interim Report January-September 2023 / Page 2 CEO’s comment We maintained the positive trajectory from the second quarter and ended the third quarter with robust results. Our distribution partners have signaled that demand was strong in multiple markets, and the quarter has seen healthy demand for our ecosystem of offerings. In the Americas, both small and large instrument sales increased steadily, with a significant number of sales and marketing initiatives in active collaboration with our distribution partners. Meanwhile, in EMEA, robust reagent sales have effectively offset the soft instrument sales. Sales growth in APAC was fueled by significant demand for large instruments in the Chinese market as inventory levels normalized. The gross margin decreased as a result of the product mix and inventory component write- downs. However, a favorable sales trend and positive currency effects have largely offset the higher cost pressure from inflation. The third quarter in brief Net sales for the Group were SEK 168 million (141) in the third quarter. Organic growth, adjusted for positive currency effects was 11 percent compared to the same quarter in 2022. EBITDA amounted to SEK 43 million (29) in the quarter, corresponding to an EBITDA margin of 26 percent (21). Sales in the Americas increased to SEK 87 million (59) driven by strong instrument sales. EMEA reported a decline with sales of SEK 59 million (74), due to a decrease in instrument sales and tough comparable figures. Momentum in China post-COVID resulted in sales increasing to SEK 22 million (8) in APAC. Cash flow from operating activities was positively impacted by a decrease in working capital and amounted to SEK 73 million (31) for the quarter. The Group’s total cash flow for the quarter amounted to SEK 44 million (6).  Progress on strategic direction We are continuing our work on the long-term development of the company in line with our strategy. The expansion of our production capacity in Bordeaux to address the rising demand for reagents is on track. Production in the new facilities will start in the beginning of next quarter, which marks an important milestone in our efforts to pursue reagent adoption on a global scale. Our marketing initiatives have intensified with the pre-launch promotion of the first version of our bone marrow application. Demonstrations of the application were conducted at the AACC (American Association for Clinical Chemistry), in Anaheim, California during the quarter, and the analysis was met with enthusiasm for its quality from end-customers. We expect to obtain CE-mark in the second half of 2024. Over the past two quarters, we have witnessed a gradual recovery from the challenges previously faced and we now look forward to continuing the execution of our strategy with our employees and partners. Simon Østergaard, President and CEO Simon Østergaard President & CEO ===== SIDA 3 ===== CellaVision Interim Report January-September 2023 / Page 3 Sales, earning and investments Sales and exchange effects Net sales for the Group’s third quarter increased by 19 percent to SEK 168m (141), compared to the corresponding quarter last year. CellaVision invoices most of the sales in Euros and US dollars, which means that exchange rate fluctuations have an impact on the company’s sales and earnings. Adjusted for positive currency effects of 8 percent, sales increased organically by 11 percent compared to the third quarter of 2022. Net sales amounted to SEK 477 m (487) for the nine-month period. Adjusted for positive currency effects of 8 percent, sales decreased organically by 10 percent compared to the corresponding period in 2022. Gross profit and gross margin Gross profit increased by 16 percent to SEK 111 m (96) during the third quarter, corresponding to a gross margin of 66 percent (68). For the nine-month period the gross profit decreased by 3 percent to SEK 327 m (337), corresponding to a gross margin of 69 percent (69). The gross margin is affected by purchase prices for materials and components, customer pricing, the product mix, amortization of capitalized development expenses, impairment of inventory as well as currency effects. The slightly lower gross margin in the third quarter is mainly explained by inventory impairment and the product mix. The inventory impairment is attributable to excess inventory of components of SEK 2 m. For the nine-month period price increases towards customers, combined with a positive currency development for the Euro and US Dollar, compensated for inflation, resulted in a sustained gross margin in line with the previous year. Amortization of capitalized development expenses were on par with the corresponding quarter last year and amounted to SEK 2 m (2) for the third quarter and to SEK 5 m (5) for the nine-month period which was on par with the corresponding period last year. Operating expenses Operating expenses for the third quarter was on par with the corresponding period last year SEK 78 m (79). For the nine-month period the operating expenses increased by 2 percent to SEK 223 m (217). EBITDA and EBITDA margin EBITDA increased by 48 percent to SEK 43 m (29) during the third quarter, corresponding to an EBITDA margin of 26 percent (21). For the nine-month period EBITDA amounted to SEK 134 m (150), corresponding to an EBITDA margin of 28 percent (31). Net financial items The interest-bearing liabilities in the form of bank loans amounted to SEK 42 m (71). The third quarter’s interest expenses from bank loans amounted to SEK 0.6 m (0.3). In addition to interest expense from bank loans, net financial income is attributable to foreign exchange gain/loss on acquisition loans in Euro and interest on leasing liability in accordance with IFRS 16. For the nine-month period interest expenses from bank loans amounted to SEK 1.8 m (0.9). Sales per quarter and rolling 12 months EBITDA per quarter and EBITDA margin rolling 12 months ===== SIDA 4 ===== CellaVision Interim Report January-September 2023 / Page 4 Investments CellaVision continuously capitalizes expenses for product development. Capitalized development expenses increased during the quarter to SEK 12 m (8). The quarter’s total research and development expenses, before capitalization, decreased to SEK 36 m (39). The lower expenses can be explained by the fact that SEK 3 m attributable to projects that were no longer considered to have any future measurable revenue, were written down and affected the expenses in the third quarter of last year. For the nine-month period capitalized development expenses increased to SEK 40 m (30). Total research and development costs, before capitalization, increased to SEK 104 m (99) for the nine- month period. The increase is attributable to CellaVision’s long-term product development goals. Most of the capitalized expenses are related to development of instruments and software applications. Cash flow The cash and cash equivalents at the end of the quarter amounted to SEK 79 m (116). In addition, CellaVision has an unutilized overdraft facility of SEK 30 m. The cash flow effect from change in working capital amounted to SEK 32 m (-1) for the quarter and is mainly explained by decreased accounts receivable and decreased tied-up capital in inventory for the quarter. The cash flow from operating activities increased to SEK 73 m (31) for the quarter, which mainly is a consequence of decrease in working capital. For the nine-month period, the cash flow from operating activities amounted to SEK 120 m (109). Cash flow from investing activities for the quarter amounted to SEK -18 m (-13) and is, mainly related to capitalized development expenses and expansion of production capacity in France in accordance with the corresponding period last year. For the nine-month period, the cash flow from investing activities amounted to SEK -63 m (-45). Cash flow from financing activities for the quarter amounted to SEK -11 million (-11) and mainly includes amortization of bank loans and leasing. For the nine-month period, the cash flow from financing activities amounted to SEK -87 million (-79) and in addition to amortization of bank loans and leasing include dividends to shareholders of SEK -54 m (-48). The total cash flow for the quarter amounted to SEK 44 m (6) and for the nine-month period amounted to SEK -29 m (-15). Parent company Apart from manufacturing of reagents, the group is in all material aspects represented by the operations in the parent company, the comments on the Group’s result and financial position also refers to the parent company. CellaVision Interim Report January-June 2023 / Page 4 ===== SIDA 5 ===== CellaVision Interim Report January-September 2023 / Page 5 Development in the geographical markets Americas: SEK 87 m (59) In the Americas, sales increased by 47 percent to SEK 87 million compared to the corresponding quarter in 2022, which included adjustments in inventory levels at distribution partners. Macro trends point to a rise in demand for digital cell morphology, in part due to a shortage of skilled laboratory personnel in the healthcare sector. Previous investments in collaboration with major distribution partners have now begun to yield positive results and boost sales figures. The region has experienced robust sales volumes, driven primarily by substantial orders from large integrated health networks. Although large instruments continue to drive sales, small instruments have gained notable traction. While sales volumes remain low, the quarter also saw sales growth in emerging markets within Latin America. Recent participation at a major congress in Brazil, as well as the upcoming attendance at a congress in Mexico are expected to open more opportunities in the long-term. We continue to strengthen the collaboration with our distribution partners in the Latin American market. EMEA: SEK 59 m (74) In EMEA, sales decreased by 20 percent to SEK 59 million in relation to tough comparable figures in the corresponding quarter in 2022. Instrument sales in the region were adversely affected as laboratories reduced their scope for investment due to macroeconomic volatility. However, reagent sales have demonstrated resilience to market uncertainty and continue to make good headway with double-digit growth. Germany, the Nordics, Benelux, and France stand out as the most mature markets, while the Middle East and Africa among others, exhibit untapped growth potential. Efforts are underway to deepen collaboration with our distribution partners in major markets and our teams are increasingly involved in sales and marketing activities. APAC: SEK 22 m (8) In APAC, sales increased by 166 percent to SEK 22 million compared to the corresponding quarter in 2022. The operations of our distribution partners are rebounding as COVID-related restrictions in key markets ease. In line with the normalization trend, a decline in inventory levels was also observed in China. Though the Chinese market exhibits significant quarterly variations, signs of recovery reflected in sales figures have been displayed in the quarter, contributing to a substantial increase compared to the corresponding quarter last year. On the other hand, elevated inventory levels in Japan still remain an obstacle for sales in that market. We are intensifying marketing initiatives in the region and collaborating closely with our distribution partners across the region to roll out our reagent business. The aim of this strategic approach is to penetrate the addressable market in the long- term. Net sales per region, MSEK Net sales per region (MSEK) Jul-Sep 2023 Jul-Sep 2022 Growth % Jan-Sep 2023 Jan-Sep 2022 Growth % Americas 87 59 47% 226 214 6% EMEA 59 74 -20% 200 219 -9% APAC 22 8 166% 51 55 -7% Total 168 141 19% 477 487 -2% ===== SIDA 6 ===== CellaVision Interim Report January-September 2023 / Page 6 Improving healthcare through continuous innovation is a fundamental ambition of CellaVision. The company devotes considerable resources to research and development to lead technology transformation and offer innovative solutions that meet customer needs and improve laboratory workflows. The most recent upgrade of CellaVisions blood analysis software, which includes a functionality for digitalizing the edge of the blood smear, is currently undergoing validation by our distributors, and is expected to be ready for the market by the end of the year. The validation of the analysis for bone marrow samples is progressing according to plan. Feedback from an early evaluation of the application at a European laboratory has enabled us to implement several important improvements that have been positively received. Production, which was impacted by component shortages throughout 2022, is now stable. However, production costs continue to increase due to high inflation and a weak Swedish krona. The CellaVision patent portfolio at the end of the period included 25 patented inventions and 114 granted patents. Research and development ===== SIDA 7 ===== CellaVision Interim Report January-September 2023 / Page 7 . Declaration by the Board of Directors and President/CEO The Board of Directors through the President/Chief Executive Officer certify that the interim report provides a true and fair view of the parent company´s and the Group´s business, financial position, performance and describes material risks and uncertainties, to which the parent company and the companies in the group are exposed. The interim report has been subject to review by the company’s auditors Simon Østergaard President/CEO Lund, October 25, 2023 The Nomination Committee and the Annual General Meeting Annual General Meeting 2024 The CellaVision Annual General Meeting in 2024 will be held in Lund at 15:00 o´clock CEST, on May 3, 2024. Shareholders wishing to have matters considered at the Annual General Meeting can send a written request by email to: bolagsstamma@cellavision.se, or ordinary mail addressed to: The Board of Directors, CellaVision AB, Mobilvägen 12, 223 62 Lund. The request must have been received at the latest seven weeks before the Annual General Meeting in order to be included in the notice to attend and thus the agenda of the Annual General Meeting. CellaVision Interim Report January-June 2023 / Page 7 ===== SIDA 8 ===== CellaVision Interim Report January-September 2023 / Page 8 Amounts in ' 000 SEK Note Jul-Sep 2023 Jul-Sep 2022 Jan-Sep 2023 Jan-Sep 2022 Jan-Dec 2022 Net sales 4 167,895 141,028 476,660 487,024 639,340 Cost of goods sold -56,471 -44,613 -149,541 -150,357 -201,023 Gross profit 111,424 96,414 327,118 336,667 438,317 Sales and marketing expenses -35,782 -30,450 -102,723 -90,469 -117,962 Administration expenses -19,094 -18,378 -55,747 -57,701 -73,536 R&D expenses -23,280 -30,631 -64,149 -69,296 -88,553 Operating profit 7 33,269 16,956 104,499 119,201 158,266 Interest income and similar profit items 388 639 3,378 2,801 5,586 Interest expense and similar profit loss items -1,502 -4,745 -7,025 -13,666 -15,423 Profit/loss before tax 32,155 12,850 100,852 108,336 148,429 Tax -6,193 -2,467 -20,974 -22,298 -30,094 Profit/loss for the period 25,962 10,383 79,878 86,038 118,335 Other comprehensive income: Components not to be reclassified to net profit: Effect on revaluation of pensions 80 -79 -98 -230 855 Tax effect on revaluation of pensions -20 20 26 59 -212 Sum of Components not to be reclassified to net profit: 60 -59 -72 -171 642 Components to be reclassified to net profit: Translation difference Translation difference in the group -7,799 9,135 10,125 24,460 27,074 Sum of Components to be reclassified to net profit: -7,799 9,135 10,125 24,460 27,074 Sum of other comprehensive income: -7,739 9,076 10,053 24,289 27,716 Comprehensive result for the period 18,222 19,459 89,931 110,327 146,052 Income statement in summary and consolidated statement of comprehensive income, Group ===== SIDA 9 ===== CellaVision Interim Report January-September 2023 / Page 9 Per share data Jul-Sep 2023 Jul-Sep 2022 Jan-Sep 2023 Jan-Sep 2022 Jan-Dec 2022 Earnings per share, before and after dilution, SEK */ 1.09 0.44 3.35 3.61 4.96 Equity per share, SEK 28.42 25.40 28.42 25.40 26.90 Number of shares outstanding 23,851,547 23,851,547 23,851,547 23,851,547 23,851,547 Average number of shares outstanding 23,851,547 23,851,547 23,851,547 23,851,547 23,851,547 Closing date stock price, SEK 153.60 254.50 153.60 254.50 229.00 Dividend per share, SEK - - 2.25 2.00 2.00 */ Based on the profit/loss for the period divided by the average number of shares in issue Amounts in ' 000 SEK Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Net sales 167,895 169,668 139,096 152,316 141,028 183,575 Gross profit 111,424 118,834 96,860 101,649 96,414 124,626 Gross margin, % 66 70 70 67 68 68 Expenses -78,156 -72,639 -71,824 -62,585 -79,458 -72,199 EBITDA 43,445 56,032 34,549 48,397 29,451 61,477 EBITDA margin, % 26 33 25 32 21 33 Net profit 25,962 34,707 19,209 32,297 10,383 37,251 Cash flow 44,245 -58,027 -15,436 -8,023 6,093 -36,324 Per share data Quarterly earnings trend ===== SIDA 10 ===== CellaVision Interim Report January-September 2023 / Page 10 Amounts in ' 000 SEK Note 09/30/2023 09/30/2022 06/30/2023 12/31/2022 Assets Intangible assets 5 431,028 384,046 429,496 399,229 Tangible assets 6 124,750 84,745 125,537 110,035 Financial assets 4,976 23,774 4,993 5,340 Inventory 139,481 130,161 156,932 142,571 Trade receivables 88,755 91,800 112,916 97,630 Other receivables 26,620 29,768 33,422 28,890 Cash and bank 78,832 116,201 34,897 108,053 Total assets 894,442 860,496 898,192 891,748 Equity and liabilities Equity 677,893 605,904 659,671 641,628 Deferred tax liability 58,245 51,205 57,510 52,925 Other provisions 5,086 5,656 5,169 3,740 Long-term debt, interest-bearing 32,711 69,430 43,155 60,364 Short-term debt, interest-bearing 43,316 41,893 44,034 42,131 Short-term debt, non interest-bearing 48,233 48,748 45,869 40,252 Trade payables 27,099 34,805 40,953 47,864 Warranty provisions 1,860 2,855 1,833 2,843 Total equity and liabilities 894,442 860,496 898,192 891,748 Amounts in ' 000 SEK 09/30/2023 09/30/2022 06/30/2023 12/31/2022 Balance at the beginning of the year 641,628 543,280 641,628 543,280 Dividend -53,666 -47,703 -53,666 -47,703 Net profit for the period 79,878 86,038 53,916 118,335 Comprehensive result for the period 10,053 24,289 17,792 27,716 Closing balance 677,893 605,904 659,671 641,628 Balance sheet in summary, Group Consolidated statement of changes in equity, Group ===== SIDA 11 ===== CellaVision Interim Report January-September 2023 / Page 11 Amounts in ' 000 SEK Jul-Sep 2023 Jul-Sep 2022 Jan-Sep 2023 Jan-Sep 2022 Jan-Dec 2022 Result before taxes 32,155 12,850 100,852 108,336 148,429 Adjustment for items not included in cash flow 13,884 21,344 39,020 42,674 44,788 Income tax paid -5,458 -2,526 -15,700 -20,744 -27,127 Cash flow from operating activities before changes in working capital 40,581 31,669 124,172 130,266 166,090 Changes in working capital 32,418 -787 -4,157 -21,145 -28,804 Cash flow from operating activities 72,999 30,881 120,015 109,121 137,285 Capitalization of development costs -12,336 -8,294 -40,117 -29,743 -45,751 Acquisitions/divestment of intangible non-current assets - - - -181 -201 Acquisitions/divestment of financial non-current assets 16 -554 363 -581 -581 Acquisitions/divestment of tangible non-current assets -5,918 -4,583 -22,914 -14,482 -23,482 Cash flow from investing activities -18,237 -13,431 -62,668 -44,987 -70,014 Amortization of loans -7,582 -8,705 -23,988 -23,560 -31,935 Amortization of leasing debts -2,934 -2,653 -8,910 -7,987 -10,772 Dividend paid - - -53,666 -47,703 -47,703 Cash flow from financing activities -10,516 -11,357 -86,564 -79,249 -90,410 Total cash flow 44,245 6,093 -29,217 -15,116 -23,139 Liquid funds at beginning of period 34,897 110,033 108,053 130,286 130,286 Exchange rate fluctuations in liquid funds -311 75 -4 1,031 906 Liquid funds at end of period 78,832 116,201 78,832 116,201 108,053 Disclosures regarding interest expense: Interest expenses for Jan-Sep 2023 amount to SEK 2 412 k (1 574) whereof SEK 564 k (658) is attributable to leasing in accordance with IFRS 16. Cash flow statement in summary, Group ===== SIDA 12 ===== CellaVision Interim Report January-September 2023 / Page 12 Amounts in ' 000 SEK Jul-Sep 2023 Jul-Sep 2022 Jan-Sep 2023 Jan-Sep 2022 Jan-Dec 2022 Net sales 130,180 111,154 362,969 395,880 517,207 Cost of goods sold -30,972 -27,003 -78,901 -92,935 -121,438 Gross profit 99,208 84,151 284,068 302,946 395,769 Sales and marketing expenses -26,236 -24,021 -74,714 -68,631 -87,311 Administration expenses -15,255 -14,764 -44,736 -47,313 -59,976 R&D expenses -34,064 -35,213 -99,642 -92,758 -126,842 Operating profit 23,654 10,153 64,977 94,244 121,640 Interest income and financial exchange gains 373 562 3,234 2,657 4,876 Interest expense and financial exchange losses -1,178 -4,363 -6,044 -12,511 -13,838 Profit before income tax 22,849 6,352 62,167 84,389 112,678 Taxes -4,708 -1,308 -12,871 -17,571 -23,575 Net profit 18,141 5,043 49,297 66,818 89,103 Statement of Comprehensive Income Jul-Sep 2023 Jul-Sep 2022 Jan-Sep 2023 Jan-Sep 2022 Jan-Dec 2022 Net profit for the period 18,141 5,043 49,297 66,818 89,103 Other comprehensive income - - - - - Comprehensive profit for the period 18,141 5,043 49,297 66,818 89,103 Income statement in summary and consolidated statement of comprehensive income, Parent company ===== SIDA 13 ===== CellaVision Interim Report January-September 2023 / Page 13 Amounts in ' 000 SEK 09/30/2023 09/30/2022 06/30/2023 12/31/2022 Assets Intangible assets 30,683 33,673 31,430 32,926 Tangible assets 5,755 5,289 5,918 4,869 Deferred tax assets 733 552 733 733 Long term receivables from group companies 37,925 21,835 32,722 22,257 Financial assets 263,523 282,889 263,523 263,907 Inventory 99,256 96,024 116,278 108,240 Trade receivables 65,899 70,717 76,340 71,485 Receivables from group companies 2,298 1,797 2,653 1,169 Other receivables 23,699 25,837 29,466 22,889 Cash and bank 61,436 93,244 29,510 93,903 Total assets 591,208 631,858 588,573 622,379 Equity and liabilities Equity 474,103 456,188 455,961 478,472 Other provisions 750 2,022 718 718 Long-term debt, interest-bearing 5,250 33,142 12,721 26,529 Short-term debt, interest-bearing 29,202 27,892 29,885 28,373 Short-term debt, non interest-bearing 34,650 36,370 32,328 27,584 Trade payables 17,543 25,533 25,935 34,148 Liabilities to group companies 27,850 47,856 29,192 23,712 Warranty provisions 1,860 2,855 1,833 2,843 Total equity and liabilities 591,208 631,858 588,573 622,379 Balance sheet in summary, Parent company ===== SIDA 14 ===== CellaVision Interim Report January-September 2023 / Page 14 NOTE 1. ACCOUNTING POLICIES The Group applies International Financial Reporting Standards (IFRS), as adopted by the EU. This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, the Annual Accounts Act and the Nasdaq Stockholm Rule Book for Issuers. Disclosures in accordance with IAS 34 p. 16A appears not only in the financial statements and their accompanying notes but also in other parts of the interim report. The parent company applies the Annual Accounts Act and the Swedish Financial Reporting Board recommendation RFR 2 Accounting for Legal Entities. The accounting policies and calculation methods applied are consistent with those described in the Annual and Sustainability Report for 2022. NOTE 2. SEGMENT REPORTING CellaVision’s operations comprise only one operating segment: automated microscopy systems and reagents in the field of hematology. Therefore, references are made to the Group’s consolidated income statement and balance sheet regarding operating segment reporting. NOTE 3. RISKS AND UNCERTAINTIES CellaVision is exposed to several risks, which may impact the Group’s development to a greater or lesser extent. Reduced demand, currency fluctuations and production disruptions are both risks and uncertainties to varying degrees. For a more detailed description of the risks and uncertainties facing CellaVision, please refer to the risk analysis on pages 68-71 and Note A2 and A5 in the Annual and Sustainability Report for 2022. Notes NOTE 4. ALLOCATION OF SALES Jul-Sep 2023 Jul-Sep 2022 Amounts in ' 000 SEK Instruments Reagents Software & Other Total Instruments Reagents Software & Other Total Americas 61,829 701 24,020 86,550 37,212 917 20,565 58,694 EMEA 15,134 30,008 13,789 58,931 33,604 24,531 15,775 73,910 APAC 19,140 760 2,514 22,414 3,723 727 3,974 8,424 Total 96,103 31,469 40,324 167,895 74,539 26,175 40,314 141,028 Jan-Sep 2023 Jan-Sep 2022 Amounts in ' 000 SEK Instruments Reagents Software & Other Total Instruments Reagents Software & Other Total Americas 146,369 1,636 78,350 226,354 130,886 2,038 80,741 213,665 EMEA 69,098 91,031 39,594 199,722 97,991 70,831 49,983 218,805 APAC 38,651 3,608 8,325 50,583 37,495 2,335 14,725 54,554 Total 254,117 96,274 126,268 476,660 266,372 75,204 145,449 487,024 Other refers to spare parts and consumables. ===== SIDA 15 ===== CellaVision Interim Report January-September 2023 / Page 15 NOTE 8. SIGNIFICANT EVENTS AFTER THE PERIOD CLOSE No significant events have occurred after the period close. NOTE 5. INTANGIBLE ASSETS Amounts in ' 000 SEK 09/30/2023 09/30/2022 Capitalised expenditure for development 197,536 148,406 Goodwill 128,201 121,791 Trademarks, customer relationships and other intangible assets 105,291 113,849 Total intangible assets 431,028 384,046 NOTE 7. EMPLOYEES Average number of employees Jul-Sep 2023 Jul-Sep 2022 Permanent employees 236 230 Temporary employees 18 25 Total 253 254 The average number of employees is calculated as an average of the number of employees at the beginning and end of the period. Temporary employees include all employees on a temporary contract with a defined end date, this includes paid interns and apprentices. NOTE 6. TANGIBLE FIXED ASSETS Amounts in ' 000 SEK 09/30/2023 09/30/2022 Right of use assets Land and buildings 30,219 37,542 Machinery, equipment 3,444 2,580 Total right of use assets 33,663 40,121 Tangible fixed assets that are not right of use assets Land and buildings 66,901 24,935 Machinery, equipment 24,186 19,689 Total tangible fixed assets that are not right of use assets 91,087 44,624 Total tangible fixed assets 124,750 84,745 The tangible fixed assets amounted to SEK 124,750 m on the balance sheet date. The majori - ty of the right of use assets consists of leases for office premises. For all leases for which the Group is lessee (which are not short term leases or low value assets), the Group recognizes a right of use asset and a lease liability. When valuating the right of use asset, the acquisition method is used, i.e the right of use asset is calculated at acquisition cost, adjusted for any revaluation of the lease liability less depreciation. The right of use asset is reported as a tangible fixed asset, while leasing liability is reported separately in the Group's statement of financial position as long-term debt, interest-bearing and short-term debt, interest-bearing. Notes, cont’d ===== SIDA 16 ===== CellaVision Interim Report January-September 2023 / Page 16 The company presents certain financial measures in the interim report which are not defined according to IFRS. The company considers these measures to provide valuable supplementary information for investors and the company’s management as they enable the assessment of relevant trends. CellaVision’s definitions of these measures may differ from other companies’ definitions of the same terms. These financial measures should therefore be seen as a supplement rather than as a replacement for measures defined according to IFRS. Definitions of measures which are not defined according to IFRS and which are not mentioned elsewhere in the interim report are presented below. Reconciliation of these measures is shown in the tables below. Currency effect . Exchange rate effects on sales growth for the period. Equity/assets ratio . Shareholders’ equity including noncontrolling interests as a percentage of total assets. EBITDA. Overall financial performance before interest, taxesdepreciation and amortization. Gross margin. Gross profit as a percentage of net sales. Gross profit. Net sales less cost of goods sold. Operating margin (EBIT), Operating profit (EBIT) as a percentage of net sales for the period. Operating profit (EBIT). Earnings before interest and tax. Equity-asset ratio KSEK 09/30/2023 09/30/2022 12/31/2022 Equity 677,893 605,904 641,628 Balance sheet total 894,442 860,496 891,748 Equity ratio 76% 70% 72% Gross margin KSEK Jul-Sep 2023 Jul-Sep 2022 Jan-Sep 2023 Jan-Sep 2022 Jan-Dec 2022 Net sales 167,895 141,028 476,660 487,024 639,340 Gross profit 111,424 96,414 327,118 336,667 438,317 Gross margin 66% 68% 69% 69% 69% Operating margin KSEK Jul-Sep 2023 Jul-Sep 2022 Jan-Sep 2023 Jan-Sep 2022 Jan-Dec 2022 Net sales 167,895 141,028 476,660 487,024 639,340 Operating profit 33,269 16,956 104,499 119,201 158,266 Operating margin 20% 12% 22% 24% 25% EBITDA KSEK Jul-Sep 2023 Jul-Sep 2022 Jan-Sep 2023 Jan-Sep 2022 Jan-Dec 2022 Operating profit 33,269 16,956 104,499 119,201 158,266 Amortization/depreciation/write-down 10,176 12,494 29,528 30,765 40,097 EBITDA 43,445 29,451 134,026 149,966 198,363 Reconciliation tables KPIs, non-IFRS measures Net sales Jul-Sep 2023 (%) Jul-Sep 2023 KSEK Jul-Sep 2022 (%) Jul-Sep 2022 KSEK Last period 141,028 131,986 Organic growth 11% 15,799 -3% -3,879 Currency effect 8% 11,068 10% 12,920 Current period 19% 167,895 7% 141,028 ===== SIDA 17 ===== CellaVision Interim Report January-September 2023 / Page 17 Review Report To the Board of Directors of CellaVision AB (publ) Corp. id. 556500-0998 Introduction We have reviewed the condensed interim financial information (interim report) of CellaVision AB (publ) as of 30 September 2023 and the nine-month period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review. Scope of review We conducted our review in accordance with International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing practices and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act. Malmö October 25, 2023 KPMG AB Jonas Nihlberg Tobias Lindberg Authorized Public Accountant Authorized Public Accountant Auditor in charge ===== SIDA 18 ===== CellaVision Interim Report January-September 2023 / Page 18 Publication This information constitutes information that CellaVision AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication at 7:20 a.m. CEST on October 25, 2023. CellaVision is listed on the Nasdaq Stockholm, Mid Cap list. The company is traded under the ticker symbol CEVI and ISIN code SE0000683484 Conference In connection with the release of the interim report analysts, investors and media are invited to a telephone conference and audio webcast on October 25, at 11:00 CEST where Simon Østergaard, President & CEO, will present and comment the report. The presentation will be in English via a conference call or audio webcast: To participate via webcast, use the link below. https://ir.financialhearings.com/cellavision-q3-report-2023 To participate via conference call, register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference. https://conference.financialhearings.com/teleconference/?id=5002796 No pre-registration is required. Please dial in 5-10 minutes prior to the scheduled start time to facilitate a timely start. Simon Østergaard President & CEO Phone: +46 46 460 16 23 simon.ostergaard@cellavision.com Magnus Blixt CFO Phone: +46 46 460 16 46 magnus.blixt@cellavision.com Financial calendar 2024 Questions concerning the report Year-end Bulletin 2023 Interim Report January-March Annual General Meeting Interim Report January-June Interim Report January-September Year-end Bulletin 2024 February 7, 2024 April 25, 2024 May 3, 2024 July 19, 2024 October 24, 2024 February 6, 2025 ===== SIDA 19 ===== CellaVision Interim Report January-September 2023 / Page 19 About us CellaVision is an innovative, global medical technology company that develops and sells its own leading solutions for routine analysis of blood and other body fluids in health care services. The products replace manual laboratory work, and secure and support effective workflows and skills development within and between hospitals. The company has leading-edge expertise in sample preparation, image analysis, artificial intelligence and automated microscopy. Sales are via global partners with support from the parent company in Lund, Sweden and by the company´s 13 local market support organizations covering more than 40 countries. Our strategic ambition: The power of focus Our strategic ambition is to digitalize and improve microscopy workflows to provide diagnostic certainty in the medical labs of the world. Our strategy is supported by our organization, processes and culture. The strategy rests on five strategic pillars: 1. Maximize our leading position in large laboratories 2. Accelerate the worldwide adoption of the DC-1 3. Accelerate our global leadership in reagents 4. Expand into specialized microscopy analyses 5. Explore new areas of analytics with innovation Financial ambition CellaVision’s objective is to create a global standard for digital microscopy. The objective is broken down into important financial targets: • Sales growth Increase sales over an economic cycle by an average of around 15 percent per year. • Profitability The EBITDA margin is to exceed 30 percent over an economic cycle. NEW AREAS SMALL AND MID-SIZE LABS • REAGENTS Mission Our mission is to advance laboratory workflow and diagnostic certainty through intelligent microscopy Our mission defines what our line of business is and what purpose we serve. Our tools for automating cell classification and diagnostic certainty include analyzers, staining reagents, smearing and staining devices and software. We are at the forefront of advancing laboratory technology, using deep learning and artificial intelligence. Vision Our vision is to elevate healthcare through the evolution of microscopy Our vision fulfills our values and provide the big picture of why we are here. Our customers work in laboratories. We provide microscopes with intelligence to make lab work easier and more efficient. Because the faster a blood sample can be correctly analyzed, the faster a patient can get a diagnosis and treatment. This is CellaVision