===== SIDA 1 ===== Sectra’s three-month interim report 2024/2025 1 (28) REPORT PRESENTATION September 6, 2024 at 10:00 a.m. Follow online: https://investor.sectra.com/q1report2425 Three-month report 2024/2025 Increased recurring revenue led to a strong first quarter Sectra is continuing to grow with satisfied customers. Sales and operating profit were the highest t he Group has ever reported for a first quarter. This trend was due in part to a more even distribution across quarters as a result of increased recurring revenue and growing volumes. At the same time, these figures are no longer being boosted by currency effects. FINANCIAL OUTCOME IN BRIEF First quarter: May–July 2024  Contracted order bookings decreased 79.3% to SEK 615.0 million (2,970.0), of which SEK 543.1 million (344.4) pertained to guaranteed order bookings. Of the guaranteed order bookings, 22% were recognized during the quarter and a further 25–35% are deemed to pertain to revenue within 12 months after the end of the quarter.  Net sales increased 24.0% to SEK 723.8 million (583.7). Based on unadjusted exchange rates, the increase was 24.7%. Recurring revenue accounted for SEK 482.3 million (397.2) of net sales, up 21.4%. Based on unadjusted exchange rates, the increase was 22.0%. Cloud recurring revenue (CRR) increased 42.1% to SEK 122.8 million (86.4).  Operating profit rose 44.0% to SEK 99.8 million (69.3), corresponding to an operating margin of 13.8% (11.9). Based on unadjusted exchange rates, operating profit increased 45.8%.  Profit for the period amounted to SEK 80.4 million (61.6).  Cash flow from operations amounted to SEK -56.7 million (-98.3). Key figures Quarter 12 months SEK million Q1 Q1 Δ R12 Full-year Δ 24/25 23/24 % 24/25 23/24 % Contracted order bookings 615.0 2,970.0 -79.3 3,868.5 6,223.5 -37.8 of which guaranteed order bookings 543.1 344.4 57.7 3,418.1 3,219.4 6.2 Net sales 723.8 583.7 24.0 3,103.7 2,963.6 4.7 of which recurring revenue 482.3 397.2 21.4 1,810.0 1,724.9 4.9 of which cloud recurring revenue (CRR) 122.8 86.4 42.1 433.3 396.9 9.2 Operating profit 99.8 69.3 44.0 548.3 517.8 5.9 Operating margin, % 13.8 11.9 n/a 17.7 17.5 n/a Profit for the period 80.4 61.6 30.5 447.2 428.4 4.4 Churn, % n/a n/a n/a 0.4 0.4 n/a Earnings per share, SEK 1 0.42 0.32 31.3 2.32 2.22 4.5 Cash flow from operations -56.7 -98.3 42.3 367.9 326.3 12.7 Average no. of employees 1,222 1,112 9.9 1,168 1,140 2.5 1 Before and after dilution Diagrams and amounts in the financial report Bars show the outcome per quarter and lines show the outcome for the rolling 12-month period (R12). Amounts are restated in SEK million unless otherwise indicated. Amounts in parentheses pertain to the corresponding quarter/period in the preceding fiscal year. ===== SIDA 2 ===== Sectra’s three-month interim report 2024/2025 2 (28) Torbjörn Kronander, President and CEO CEO’S COMMENTS The first quarter was dominated by deliveries of previously ordered customer projects. Additional hospitals have gone live with our cloud-based services for medical imaging and we have delivered several products for secure communication to defense forces and authorities. There is a great need for increased cybersecur ity in society and our operations in Secure Communications are continuing to perform well. The same applies to Imaging IT Solutions, where we are in the middle of a transformation to cloud-based services for medical diagnostics. We are making progress, which is confirmed by the growth we have seen in cloud recurring revenue. We also have deliveries to major healthcare providers in several countries planned over the next few years. In Business Innovation, the launch of the new genomics IT module marked a major milestone during the quarter. Cancer diagnostics based on genetic information (genomics) is developing quickly and has, until this point, lacked effective IT support for high production. Our new offering strengthens Sectra’s position in integrated diagnostics for cancer care, an area that we have seen grow in importance when healthcare providers evaluate potential suppliers. Financially speaking, we had a stable beginning to the fiscal year. Positive performances in all operating areas contributed to our highest-ever sales and operating profit figures for a first quarter. To some extent, this is because increas ed recurring revenue has helped to even out the results between quarters. For the quarter, recurring revenue accounted for a full 70% of sales in Imaging IT Solutions and 67% for the Group as a whole. Our ongoing transition to a new business model will gradually reduce the level of variation and typical seasonal effects, but we are not quite there yet. On the other hand, indi vidual orders are sometimes very large, leading instead to a larger variation in order bookings between quarters than before. Bearing this in mind, it remains important to look more at long-term trends rather than at the outcome for an individual quarter when assessing Sectra’s performance. Healthcare and data security are both areas that are expected to grow for a long time to come, and that are relatively unaffected by the economic climate. While our strategic investment in service sales is having a short-term dampening effect on our financial outcome and growth, it will be beneficial in the long term. Not least because Sectra’s customers are satisfied and stay with us for a long time. With loyal customers combined with a strong brand in growing areas, we have every reason to remain optimistic about the future. Cloud services +42% of recurring revenue over the comparative quarter Churn 0.4% of recurring revenue, R12 as-a-service ===== SIDA 3 ===== Sectra’s three-month interim report 2024/2025 3 (28) 0 25 50 75 100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 22/23 23/24 24/25 % 0 10 20 30 40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 22/23 23/24 24/25 % 0 50 100 150 200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 22/23 23/24 24/25 % OPERATIONAL TARGETS AND FINANCIAL GOALS Sectra’s overall operational target is to create significant value for its customers. Customers should be so satisfied with the ir experience that they remain for a long time, expand their use of our solutions and recommend Sectra to others. Delivering customer value is also the Group’s most important sustainability target since our customers’ work to treat patients and increase cybersecurity is essential for functioning societies. Customer satisfaction cannot be achieved without satisfied and dedicated employees. Employees who are motivated, understand their customers, feel good and are satisfied in their jobs will also increasingly develop new, creative solutions that can furt her increase the value we provide for Sectra’s customers. Operating in markets that are growing, combined with satisfied customers and employees, provides a long-term sound financial performance. Sectra has three Group-wide financial goals. Stability and prof itability are considered fundamental goals. Once these goals hav e been met, the focus shifts to earnings growth per share, which in practice is our primary financial goal. All result indicators currently exceed the target levels by a comfortable margin despite the e ffects of changes in the business model. The financial goals are (in order of priority): 1. Stability1: Equity/assets ratio ≥30% 2. Profitability: Operating margin ≥15% 3. Earnings growth: Growth for operating profit/share over a five-year period ≥50% The equity/assets ratio exceeded th e target due to a continued stron g financial position. 1 The line in the diagram shows the outcome at the end of the period The operating margin was impacted by the ongoing transformation of the business model. Sales grew at a higher rate than costs. This is in line with Sectra’s long-term work to increase cost efficiency. High level of customer satisfaction High level of quality and product safety Dedicated employees who are satisfied, improving as individuals and doing their best to meet or exceed customer expectations Healthier employees and minimal absence due to illness 52.2% Goal 17.7% Goal 138.0% Goal Outcome of operational targets ===== SIDA 4 ===== Sectra’s three-month interim report 2024/2025 4 (28) EVENTS First quarter Imaging IT Solutions  The final hospitals in Region Hovedstaden in Denmark went live with Sectra One Cloud, see below.  Sectra One Cloud was taken into operation at Zuyderland Medical Center in the Netherlands. The customer has used Sectra’s IT solution to manage medical images and will now move to using cloud services with Sectra One Cloud.  NHS trusts in the East of England started to use Sectra One Cloud for digital pathology. Business Innovation  Sectra’s newly developed module for genomics in molecular pathology was made commercially available in the US market. Pennsylvania Health System—Sectra’s partner in developing the product—became the first to use the module, which is sold only as a service. Secure Communications  Two energy companies extended their agreements with Sectra for monitoring critical OT systems. After the end of the reporting period  No events of significant importance for the assessment of Sectra’s earnings and financial position took place between the balance-sheet date and the publication date of this interim report. Sectra One Cloud to improve diagnostic imaging in Denmark’s largest healthcare region Region Hovedstaden in Denmark ordered Sectra One Cloud two years ago. The region provides care to more than 1.8 million residents and the customer contract is the largest to date for Sectra in Scandinavia when it comes to cloud services for medical imaging. During the quarter, the services went live at three more of the customer’s hospitals. All of the region’s hosp itals now use Sectra’s services to review and store radiology images, including mammography, nuclear medicine and clinical physiology. ===== SIDA 5 ===== Sectra’s three-month interim report 2024/2025 5 (28) 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 0 500 1 000 1 500 2 000 2 500 3 000 3 500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 22/23 23/24 24/25 R12 Quarter Contracted order bookings, quarter Contracted order bookings, R12 SECTRA’S MARKETS Sectra plays a key role in meeting the need for medical imaging IT and cybersecurity. We help solve major social problems in changing markets, where scope for expansion remains. The global trends of an aging population and increased digitization mean that these markets are expected to continue to grow regardless of the economic climate. Our customers operate in some of society’s most critical functions, which means that it is important that Sectra’s brand is associated with reliability, trustworthiness and stability. Our job is to help customers become more efficient and give them the tools nee ded to make people’s lives healthier, safer and more secure. In line wi th Sectra’s vision, this is how the company creates value for i ts customers, shareholders and society as a whole. IT support for more efficient care and medical education Aging populations, combined with a decline in the proportion of pe ople of working age, are leading to a shortage of resources a nd a growing workload in healthcare. In order to maintain high quality of care with fewer people taking care of more patients, healt hcare must become more efficient. The growing population of senior ci tizens is also shining a spotlight on diseases affecting the eld erly. Health problems affecting the elderly primarily include cancer diseases and problems with the cardiovascular, nervous, and skel etal systems as well as vision and hearing. All of these areas, which are among the most costly and resource-intensive areas in healthcare, are dependent on medical diagnostic imaging. Healthcare providers across the globe use Sectra’s expertise a nd solutions in medical imaging IT not only to increase productiv ity and coordinate their resources but also to improve efficiency in orthopaedic surgery through better planning and follow-up. Sec tra also helps to raise the quality of medical education by providing solutions where the user can interact with medical images and share educational materials. IT support for genomics is yet another area that Sectra is entering through partnerships with customers in the US and Sweden. The market for genomics is growing as a result of the rapid increase in the number of clinical DNA sequencings carried out during diagnostics, and needs to be managed efficien tly. We also have synergies among our operating areas. Healthca re is increasingly becoming a target for cybercrime, resulting in, for example, the authorities in the US issuing a particular war ning to healthcare providers. Sectra’s experience and brand when it comes to security gives us advantages in the field of medicine as well. We enable our customers to take care of more patients and save more lives at a long-term sustainable cost. This work is carried out in our Imaging IT Solutions and Business Innovation operating areas. Cybersecurity for a more stable and safer society The ability to safely and efficiently handle and transmit sensitive information is central to the stability and security of soc iety, particularly when it comes to critical social functions and crit ical infrastructure. As digitization increases, the players in these areas have a major need for products and services that increase cybersecurity. Sectra has extensive experience of protecting society’s most critical communications and control systems. We are a strong brand in the niche markets of encryption and secure mobile communications. IT developments in society, political instability in the world, and the growth of cybercrime are creating a gre ater need for Sectra’s expertise and product offerings. We help customers to provide increased security, thereby contributi ng to a more stable and safer society. This work is carried out in the Secure Communications operating area. The activities conducted in the operating area are part of Sweden’s collective nation al capability within crypto—a strategic materiel area identified by government authorities as an essential security interest for w hich national availability, skills and capacity need to be secured over time. COMMENTS ON THE GROUP’S FINANCIAL OUTCOME Order bookings Contracted order bookings decreas ed 79.3% to SEK 615.0 million (2,970.0). Guaranteed order bookings totaled SEK 543.1 million (344.4), up 57.7%. The ratio of contracted order bookings to net sales for the latest rolling 12-month period totaled 1.2, compared to 2.1 at the end of the previous fiscal year. The order bookings for the comparative quarter include comprehensive, long-term customer contracts, including a contract with a healthcare provider in the US with a contracted order value of SEK 2.4 billion. Orders of this size are not secured every quarter and lead to significant variations in order bookings between individual quarters and periods. Contracted order bookings, SEK million ===== SIDA 6 ===== Sectra’s three-month interim report 2024/2025 6 (28) 0 500 1 000 1 500 2 000 2 500 3 000 3 500 0 200 400 600 800 1 000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 22/23 23/24 24/25 R12 Quarter Other recuring revenue Cloud recurring revenue Non-recurring revenue Sales, R12 0 200 400 600 800 1000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 22/23 23/24 24/25 US Sweden UK Rest of Europe Rest of World Netherlands Net sales and recurring revenue All operating areas continued to grow and the Group’s net sale s rose 24.0% to SEK 723.8 million (583.7). Based on unadjusted exchange rates, consolidated sales increased 24.7%. The ongoing transition to selling products and software as servi ces, of which cloud deliveries account for a quickly growing sh are, contributed to an increase in recurring revenue. Recurring revenue accounted for SEK 482.3 million (397.2) of sales. This represents an increase of 21.4% and based on unchanged exchange rates an increase of 22.0%. Lost recurring revenue (recurring revenue churn) for the last 12-month period was 0.4%. CRR increased 42.1% to SEK 122.8 million (86.4). Non-recurring revenue also performed well and rose 29.5% to SEK 241.5 million (186.5). Sectra grew in all geographic markets. The operations in th e UK reported the largest individual sales increase from the compara tive quarter. More than 70% of the Group’s sales are carried out in foreign currency, primarily EUR, GBP and USD, which entails a relatively large sensitivity to currency fluctuations. Sales and recurring revenue, SEK million Sales by geographic market, SEK million Sales trend per geographic market, SEK million Compared with the corresponding period of the preceding fiscal year Sales trend per operating area, SEK million Compared with the corresponding period of the preceding fiscal year Total Increase Decrease ===== SIDA 7 ===== Sectra’s three-month interim report 2024/2025 7 (28) -200 -100 0 100 200 300 400 500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 22/23 23/24 24/25 0 100 200 300 400 500 600 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 22/23 23/24 24/25 Result The Group’s operating profit increased 44.0% to SEK 99.8 million ( 69.3). Based on unadjusted exchange rates, operating profit increased 45.8% compared with the comparative quarter. This positive trend is a result of sales growth in all operating areas. The Group’s operating margin amounted to 13.8% (11.9). Sales during the quarter grew more than operating costs, with Imaging IT Solutions and Secure Communications both contributing to the increased operating margin. The Group’s financial items amounted to SEK 1.4 million (8.2). Cu rrency fluctuations had a negative impact of SEK -1.7 million (pos: 3.1) on financial items. Sectra does not hedge its operations , and currency fluctuations therefore have an immediate impa ct on profit or loss or on comprehensive income. Profit after fina ncial items amounted to SEK 101.3 million (77.5). This outcome corresponds to a profit margin of 14.0% (13.3). Earnings per share totaled SEK 0.42 (0.32). Financial position and cash flow The Group’s cash and cash equivalents at the end of the reporting period amounted to SEK 699.4 million (688.2). The Group’s debt/equity ratio was 0.03 (0.06) as of the balance-sheet date. Interest- bearing lease liabilities decreased to SEK 45.9 million (78.0). The change was primarily due to the termination of the lease for Sectra’s head office in conjunction with the acquisition of the property during the previous fiscal year. Cash flow from operations amounted to SEK -56.7 million (-98.3) during the quarter. The change was primarily the result of a decrease in capital tied up in current receivables. Cash flow per share was SEK -0.29 (-0.51). Cash flow from investing activities amounted to SEK -43.1 million (-38.9). Refer to the additional information about investments on the next page. The Group’s total cash flow for the period amounted to SEK -104.1 million (-144.0). Operating profit trend per operating area, SEK million Compared with the corresponding period of the preceding fiscal year Operating profit, Group, SEK Total Increase Decrease Cash flow from operations, Group, SEK million ===== SIDA 8 ===== Sectra’s three-month interim report 2024/2025 8 (28) 0 50 100 150 200 250 -20 -10 0 10 20 30 40 50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 22/23 23/24 24/25 Accumulated at end of period Quarter Capitalization of development expenditures Depreciation/amortization capitalized development expenditures Capitalized development expenditures at end of period Investments and depreciation/amortization Investments amounted to SEK 43.1 million (38.9). Capitalized work for own use amounted to SEK 12.9 million (18.0). Capitalization includes the development of cloud-based services for medical diagnostics. Depreciation/amortization totaled SEK 26.1 million (24.5). Of the outcome for the quarter, SEK 11.0 million (9.1) pertained to capitalized development expenditures. At the end of the period, capitalized development expenditures totaled SEK 204.7 million (180.2). Seasonal variations Sectra has historically experienced major seasonal variations, since individual projects can be very large relative to Sectra’s sales. This applies for both medical systems and encryption systems. The beginning of the fiscal year is usually weaker since few customers want to deploy new systems during the summer. The variations in order volumes between individual quarters are significant since certain contracts are very large and have long terms. As Sectra transitions to selling products as a service, this variation is expected to gradually decrease over the next several years since revenue will be spread more evenly over time. For further information about Sectra’s seasonal patterns, refer to page 70 in Sectra’s Annual and Sustainability Report for the 2023/2024 fiscal year. Capitalized development expenditures, SEK million Read Sectra’s Annual Report and Sustainability Report https://investor.sectra.com/annual-reports ===== SIDA 9 ===== Sectra’s three-month interim report 2024/2025 9 (28) 0 500 1 000 1 500 2 000 2 500 3 000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 22/23 23/24 24/25 OPERATING AREA IMAGING IT SOLUTIONS Quarter 12 months Q1 Q1 Δ R12 Full-year Δ 24/25 23/24 % 24/25 23/24 % Sales, SEK million 639.9 518.6 23.4 2,672.9 2,551.6 4.8 of which external recurring revenue 448.9 370.7 21.1 1,687.5 1,609.3 4.9 of which external cloud recurring revenue (CRR) 117.6 83.0 41.7 412.9 378.3 9.1 Operating profit, SEK million 95.0 74.3 27.9 520.6 499.9 4.1 Operating margin, % 14.8 14.3 n/a 19.5 19.6 n/a Imaging IT Solutions reported increased sales and earnings over the comparative quarter. All geographic regions contributed to the positive sales trend. Recurring revenue accounted for 70% of sales for the quarter, which was primarily a result of customers’ growing use of medical imaging IT as a service. A large share of recurring revenue will promote stability during the ongoing transformation to service sales and cloud solutions. The accelerating transition to cloud services is clear from Sectra’s growth in cloud recurring revenue. Non-recurring revenue also increased from the comparative quarter. Profitability continued to be impacted by ongoing initiatives, the most extensive of which was the transition to becoming a service provider. The transition to selling cloud services means that a growing share of revenue and earnings are reported over time and therefore arise later than with traditional license sales. The strong underlying growth in Sectra’s operations, in combination with the fact that not all transactions pertain to subscription serv ices yet, partially compensated for the dampening effects of the change in th e business model. The transition will be favorable over the long term, especially because customers are satisfied and stay with us for a long time. Imaging IT Solutions has more and larger customers than ever before. In the last year, the operation won some of Sectra’s largest contracts, including contracts with one of the largest healthcare providers in the US and the public healthcare provider in Scotland. The orders were for Sectra One Cloud. Now work is ongoing to prepare deliveries of customer orders so that they can go live with the services. The implementation of services and infrastructure at new major customers initially entails increased costs. Revenue then grows gradually as customers put systems into operation, but it can take several years for major customers to become fully operational and reach planned volumes. Sales Operating profit Trend, SEK Cloud services—Sectra helps customers make the transition In the next five years, the majority of new customers are expected to purchase cloud-based services. Thanks to Sectra One Cloud, which includes services for all medical imaging IT, Sectra is well positioned to meet growing demand when customers are ready to replace traditional systems with cloud services. Cloud recurring revenue +42% over the comparative quarter ===== SIDA 10 ===== Sectra’s three-month interim report 2024/2025 10 (28) 0 100 200 300 400 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 22/23 23/24 24/25 OPERATING AREA BUSINESS INNOVATION Quarter 12 months Q1 Q1 Δ R12 Full-year Δ 24/25 23/24 % 24/25 23/24 % Sales, SEK million 17.6 16.7 5.4 90.8 89.9 1.0 of which external recurring revenue 5.8 3.7 56.8 22.0 19.9 10.6 of which external cloud recurring revenue (CRR) 5.2 3. 4 52.9 20.4 18.6 9.7 Operating profit/loss, SEK million -0.3 -1.0 70.0 18.0 17.3 4.0 Operating margin, % neg neg n/a 19.8 19.2 n/a Business Innovation comprises the Genomics IT, Medical Education and Orthopaedics business units. We also report the expenses for medical research activities in Business Innovation, which includes initiatives in the field of AI for medical applications. Recurring revenue is growing quickly, and the financial outcome in terms of sales and operating profit is on par with the comparative quarter. However, the results may vary significantly between quarters and periods. Subscription-based business models and growing volumes are expected to reduce the variations over the longer term. . Sales Operating profit Trend, SEK Cloud recurring revenue +53% over the comparative quarter Better and more effective cancer care—hospitals in the US first to use Sectra’s new service for genomics Analyses of genetic information (genomics) are an important part of choosing the best possible treatment for each patient. Care based on genetic information is often called precision medicine, one of the fastest-growing areas within diagnostics. Growing volumes of analyses represent a challenge for healthcare. Sectra has developed a diagnostics IT module for genomics to help customers improve and streamline the management of analyses within molecular pathology. The module was developed together with the University of Pennsylvania Health System in the US, which initiated clinical use of the solution during the first quarter. The module is sold as a service and is integrated with Sectra’s modules for radiology and pathology imaging. ===== SIDA 11 ===== Sectra’s three-month interim report 2024/2025 11 (28) -100 0 100 200 300 400 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 22/23 23/24 24/25 OPERATING AREA SECURE COMMUNICATIONS Quarter 12 months Q1 Q1 Δ R12 Full-year Δ 24/25 23/24 % 24/25 23/24 % Sales, SEK million 77.5 56.3 37.7 388.6 367.4 5.8 of which external recurring revenue 27.3 22.8 19.7 99.4 94.9 4.7 Operating profit, SEK million 10.1 2.6 288.5 67.3 59.8 12.5 Operating margin, % 13. 0 4.6 n/a 17.3 16.3 n/a Secure Communications reported the best first quarter for the operating area to date, in terms of sales as well as earnings. There is great demand for cybersecurity for the defense forces, authorities and critical infrastructure, and we are well positioned with offerings that meet customers’ stringent demands. Order bookings during the first quarter included development assignments and product sales as well as support and service commitments. Sectra received various orders, including orders pertaining to the further development and serial deliveries of Tiger/S and network encryptors to existing customers. Existing customers also extended and expanded agreements, both for support of secure communications and for security monitoring of critical infrastructure. The uncertain geopolitical situation, with ongoing wars in Europe and further tensions worldwide, continues to highlight the importance of defense capabilities and public security. This, in turn, is placing greater demands on communication and fueling the need for investments in high assurance products, encryption development and cybersecurity. Sectra’s ability to help customers both in Sweden and around Europe led to strong order bookings and sales growth. Operating profit took a significant step in the right direction and, since the previous fiscal year, has made growing contributions to the Group’s overall financial goals. The long-term trend is positive, although outcomes can naturally vary greatly between quarters due to the nature of the operations. Network encryptors for the highest security classification and large amounts of data Sectra offers advanced and powerful network encryptors for protecting classified information that flows in the networks between civilian and military authorities. The products handle large amounts of data at a high level of performance. They are approved for the highest security classi- fication, Top Secret. Trend, SEK Sales Operating profit ===== SIDA 12 ===== Sectra’s three-month interim report 2024/2025 12 (28) OTHER OPERATIONS Quarter 12 months Q1 Q1 Δ R12 Full-year Δ 24/25 23/24 % 24/25 23/24 % Sales, SEK million 47.3 34.6 36.7 177.6 164.9 7.8 Operating loss, SEK million -9.1 -6.5 -40.0 -61.7 -59.1 -4.4 Operating margin, % neg neg n/a neg neg n/a Other Operations pertain to Sectra’s joint functions for administration, recruitment, Group finance, IT, regulatory affairs, people and brand, and activities related to investors. This segment also includes property management. The change from the comparative quarter mainly pertained to increased central management of costs distributed across the organization. PARENT COMPANY The Parent Company’s income statement and balance sheet are re ported on page 17. The Parent Company Sectra AB includes the research department for medical imaging IT, the Genomics IT business unit and the head office’s joint functions (see Other Operations above). 2024 AGM AND PROPOSED SHARE REDEMPTION PROGRAM The AGM will be held on September 10, 2024 in Linköping, Sweden. Visit https://investor.sectra.com/agm2024 for further information and documents. Proposed share redemption program/dividend For the 2023/2024 fiscal year, the Board and the President propos e that the AGM resolve to distribute SEK 1.10 per share to the shareholders through a 2:1 share split in combination with a mandatory redemption process. The corresponding distribution to the shareholders in the preceding year was SEK 1.10 per share. The proposal was announced in Sectra’s year- end report published on June 5, 2024. THE SHARE Share capital and number of shares Sectra’s share capital on the balance-sheet date totaled SEK 38,824,179, distributed betw een 194,120,895 shares and 312,052,035 voting rights. The number of shares is distributed between 13,103,460 Class A shares and 181,017,435 Class B shares. Sectra’s holding of treasury shares at the end of the period amounted to 1,453,406 Class B shares, corresponding to 0.7% of the share capital and 0.5% of the voting rights in the company. For more information, refer to Note 3. Authorization The Board of Directors was authorized by the 2023 AGM, during the period until the 2024 AGM, to decide on new share issues of a maximum of 18,500,000 Class B shares and to decide on the acquisiti on and divestment of the company’s treasury shares, with the condition that the Company’s holding of treasury shares at no point exceeds 10% of all the shares in the Company. The complete authorization is presented in the minutes from the AGM: https://investor.sectra.com/agm2023. At the time of publication of this financial report, the Board had not utilized these authorizations. RISKS AND UNCERTAINTIES Through its operations, Sectra is exposed to such business risks as dependence on major customers and partners, the effect of currency fluctuations on pricing in the markets in which the Group is active, and property and liability risks. Sectra is also exposed t o various types of financial risks such as currency, interest-rate, credit and liquidity risks. A detailed description of the risks and specific external factors as well as Sectra’s strategies and tactics for minimi zing risk exposure and limiting adverse effects are provided in th e Administration Report in Sectra’s Annual and Sustainability Report for the 2023/2024 fiscal year on pages 88–90 and in Note 29 on pages 119–120. No significant events have occurred that would alter the conditions reported. ===== SIDA 13 ===== Sectra’s three-month interim report 2024/2025 13 (28) FOR FURTHER INFORMATION Contact Sectra’s CEO Torbjörn Kronander, telephone +46 13 23 52 27 or email info.investor@sectra.se. Presentation of the interim report Time: September 6, 2024 at 10:00 a.m. (CEST) Torbjörn Kronander, President and CEO of Sectra AB, and Jessica Holmquist, CFO of Sectra AB, will present the financial report and answer questions. The presentation will be held in English. For information about participating online or to listen to the recording afterwards, visit: https://investor.sectra.com/q1report2425. Financial calendar and AGM 2024 AGM September 10, 2024 at 3:30 p.m. (CEST) Six-month interim report December 12, 2024 at 8:15 a.m. (CET) Nine-month report March 14, 2025 at 8:15 a.m. (CET) Year-end report June 5, 2025, at 08:15 a.m. (CEST) For other IR events, visit: https://investor.sectra.com/events-and-presentations/ ASSURANCE The Board of Directors and the President of Sectra AB (publ) hereby assure that the interim report from May 1 to July 31, 2024 provides a true and fair view of the Parent Company’s and Gr oup’s operations, financial position and earnings and describes the significant risks and uncertainties facing the Parent Company and other companies in the Group. Linköping, date as indicated by our electronic signature Torbjörn Kronander Jan-Olof Brüer Tomas Puusepp Birgitta Hagenfeldt President, CEO and Board member Chai rman Board member Board member Ulrika Unell Anders Persson Fredrik Robertsson Board member Board member Board member Pontus Svärd Andreas Örnéus Board member and employee representative Bo ard member and employee representative This report was not reviewed by the company’s auditor. This information constitutes information that Sectra AB (publ) is obligated to make public pursuant to the EU Market Abuse Regu lation. The information was submitted for publication, through the agency of Sectra’s contact person set out below, at 8:15 a.m. (CEST) on September 6, 2024. Sectra AB (publ), Corporate Registration Number 556064-8304, https://sectra.com, email info@sectra.com ===== SIDA 14 ===== Sectra’s three-month interim report 2024/2025 14 (28) GROUP Condensed consolidated income statements SEK thousand 3 months May–Jul 2024 3 months May–Jul 2023 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 Net sales (Note 4) 723,836 583,739 3,103,704 2,963,607 Capitalized work for own use 12,915 17,970 66,519 71,574 Other operating income 2,729 1,320 6,797 5,388 Total income 739,480 603,029 3,177,020 3,040,569 Goods for resale -103,285 -71,079 -463,424 -431,218 Personnel costs -380,144 -319,715 -1,497,337 -1,436,908 Other external costs -130,088 -118,385 -562,202 -550,499 Depreciation/amortization and impairment -26,148 -24,537 -105,745 -104,134 Total operating expenses -639,665 -533,716 -2,628,708 -2,522,759 Operating profit 99,815 69,313 548,312 517,810 Total financial items 1,445 8,213 28,196 34,964 Profit after financial items 101,260 77,526 576,508 552,774 Taxes -20,859 -15,970 -129,275 -124,386 Profit for the period 80,401 61,556 447,233 428,388 Profit for the period attributable to: Parent Company owners 80,401 61,556 447,233 428,388 Earnings per share Before dilution, SEK 0.42 0.32 2.32 2.22 After dilution, SEK (Note 3) 0.42 0.32 2.32 2.22 Consolidated statement of comprehensive income SEK thousand 3 months May–Jul 2024 3 months May–Jul 2023 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 Profit for the period 80,401 61,556 447,233 428,388 Items that may be reversed in profit or loss Translation differences -3,450 20,894 3,655 27,999 Total other comprehensive income for the period -3,450 20,894 3,655 27,999 Total comprehensive income for the period 76,951 82,450 450,888 456,387 Comprehensive income for the period attributable to: Parent Company owners 76,951 82,450 450,888 456,387 ===== SIDA 15 ===== Sectra’s three-month interim report 2024/2025 15 (28) Condensed consolidated balance sheets SEK thousand Jul 31, 2024 Jul 31, 2023 Apr 30, 2024 Assets Intangible assets and goodwill 263,633 248,631 262,330 Tangible assets 228,015 74,306 227,040 Right-of-use assets 68,539 80,776 35,241 Financial assets 165,157 133,265 155,189 Deferred tax assets 8,630 6,779 8,990 Total fixed assets 733,974 543,757 688,790 Accounts receivable 566,537 431,692 571,661 Other current assets 43,769 67,772 60,218 Prepaid expenses and accrued income 1,128,297 876,756 1,085,629 Short-term investments – 120,000 – Cash and bank balances 699,355 688,210 804,640 Total current assets 2,437,958 2,184,430 2,522,148 Total assets 3,171,932 2,728,187 3,210,938 Equity and liabilities Equity 1,654,220 1,386,349 1,569,591 Deferred tax liabilities 6,721 6,095 7,038 Provisions 33,729 13,685 26,342 Non-current lease liabilities 32,812 52,135 19,204 Total long-term liabilities 73,262 71,915 52,584 Provisions 3,364 3,158 2,637 Current lease liabilities 13,072 25,865 12,584 Other current liabilities 164,303 136,938 218,573 Accrued expenses and deferred income 1,263,711 1,103,962 1,354,969 Total current liabilities 1,444,450 1,269,923 1,588,763 Total equity and liabilities 3,171,932 2,728,187 3,210,938 ===== SIDA 16 ===== Sectra’s three-month interim report 2024/2025 16 (28) Consolidated cash-flow statements SEK thousand 3 months May–Jul 2024 3 months May–Jul 2023 Full-year May–Apr 2023/2024 Operating activities Operating profit 99,815 69,313 517,810 Adjustment for non-cash items 47,491 38,888 142,681 Interest received 3,731 5,597 25,991 Interest paid -561 -434 -3,284 Income tax paid -70,199 -32,632 -118,291 Cash flow from operations before changes in working capital 80,277 80,732 564,907 Changes in working capital Change in inventories -11,412 -1,080 -21,541 Change in receivables -28,435 -64,075 -408,649 Change in current liabilities -97,146 -113,875 191,609 Cash flow from operations -56,716 -98,298 326,326 Investing activities Acquisitions of intangible assets -12,914 -18,599 -72,210 Acquisitions of tangible assets -30,169 -20,301 -178,532 Repayment of short-term investment – – 120,000 Cash flow from investing activities -43,083 -38,900 -130,742 Financing activities Repayment of lease liabilities -4,336 -6,786 -10,268 Redemption of shares – – -211,935 Cash flow from financing activities -4,336 -6,786 -222,203 Cash flow for the period -104,135 -143,985 -26,619 Cash and cash equivalents, opening balance 804,640 825,242 825,242 Exchange-rate difference in cash and cash equivalents -1,150 6,953 6,017 Cash and cash equivalents, closing balance 699,355 688,210 804,640 Condensed consolidated statement of changes in equity SEK thousand 3 months May–Jul 2024 3 months May–Jul 2023 Full-year May–Apr 2023/2024 Equity at start of period 1,569,591 1,296,669 1,296,669 Comprehensive income for the period 76,951 82,450 456,387 Dividend/redemption of shares – – -211,935 Share-based payments 7,678 7,230 28,470 Equity at end of period 1,654,220 1,386,349 1,569,591 ===== SIDA 17 ===== Sectra’s three-month interim report 2024/2025 17 (28) PARENT COMPANY Condensed Parent Company income statements SEK thousand 3 months May–Jul 2024 3 months May–Jul 2023 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 Net sales 47,356 34,874 179,743 167,261 Capitalized work for own use 1,221 1,106 5,651 5,536 Other operating income 17 10 613 606 Total income 48,594 35,990 186,007 173,403 Goods for resale -10,577 -3,539 -28,972 -21,934 Personnel costs -17,595 -14,385 -78,338 -75,128 Other external costs -31,986 -25,686 -149,775 -143,475 Depreciation/amortization -446 -399 -1,758 -1,711 Total operating expenses -60,604 -44,009 -258,843 -242,248 Operating loss -12,010 -8,019 -72,836 -68,845 Total financial items 1,471 69,479 60,839 128,847 Profit/loss after financial items -10,539 61,460 -11,997 60,002 Appropriations – – 427,350 427,350 Profit/loss before tax -10,539 61,460 415,353 487,352 Tax on earnings for the period – 5 -81,752 -81,747 Profit/loss for the period -10,539 61,465 333,601 405,605 Parent Company statement of comprehensive income SEK thousand 3 months May–Jul 2024 3 months May–Jul 2023 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 Profit/loss for the period -10,539 61,465 333,601 405,605 Total comprehensive income for the period -10,539 61,465 333,601 405,605 Condensed Parent Company balance sheets SEK thousand Jul 31, 2024 Jul 31, 2023 Apr 30, 2024 Assets Intangible assets 10,405 4,752 9,183 Tangible assets 7,240 5,266 6,336 Financial assets 375,074 256,321 367,480 Total fixed assets 392,719 266,340 382,999 Accounts receivable 945 0 421 Receivables from Group companies 856,651 533,885 798,354 Other current assets 23,647 34,703 26,085 Short-term investments – 120,000 – Cash and bank balances 569,805 517,342 683,564 Total current assets 1,451,048 1,205,930 1,508,424 Total assets 1,843,767 1,472,270 1,891,423 Equity and liabilities Restricted equity 275,684 270,032 274,463 Unrestricted equity 777,416 632,900 781,922 Total equity 1,053,100 902,932 1,056,385 Provisions 3,069 1,214 2,685 Current liabilities 787,598 568,124 832,353 Total equity and liabilities 1,843,767 1,472,270 1,891,423 ===== SIDA 18 ===== Sectra’s three-month interim report 2024/2025 18 (28) NOTES Note 1 Accounting policies This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act and the Swedish Securities Markets Act. The accounting policies and calculation methods applied are consistent with those described in Sectra’s 2023/2024 Annual and Sustainability Report. Note 2 Related-party transactions Other than the types of transactions presented in Note 3 Employees and personnel costs in the 2023/2024 Annual Report, no signi ficant transactions with related parties took place in the reporting period. Note 3 Number of shares No. of common shares1, 2 3 months May–Jul 2024 3 months May–Jul 2023 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 At the end of the period 192,667,489 192,667,489 192,667,489 192,667,489 Average 192,667,489 192,667,489 192,667,489 192,667,489 1 Before and after dilution. 2 Number of shares does not include the 1, 453,406 (1,453,406) Class B treasury shares. Note 4 Operating segments and sales Operating profit/loss by business segment SEK million 3 months May–Jul 2024 3 months May–Jul 2023 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 Imaging IT Solutions 95.0 74.3 520.6 499.9 Secure Communications 10.1 2.6 67.3 59.8 Business Innovation -0.3 -1.0 18.0 17.3 Other Operations -9.1 -6.5 -61.7 -59.1 Group eliminations 4.1 -0.1 4.1 -0.1 Total 99.8 69.3 548.3 517.8 SEK million 3 months May–Jul 2024 3 months May–Jul 2023 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 United States 179.0 149.6 855.6 826.2 Sweden 132.9 104.9 612.6 584.6 United Kingdom 156.7 118.6 616.2 578.1 Netherlands 48.8 38.7 194.1 184.0 Rest of Europe 138.4 121.5 576.4 559.5 Rest of World 68.0 50.4 248.8 231.2 Total 723.8 583.7 3,103.7 2,963.6 Sales by business segment SEK million 3 months May–Jul 2024 3 months May–Jul 2023 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 Imaging IT Solutions 639.9 518.6 2,672.9 2,551.6 Secure Communications 77.5 56.3 388.6 367.4 Business Innovation 17.6 16.7 90.8 89.9 Other Operations 47.3 34.6 177.6 164.9 Group eliminations -58.5 -42.5 -226.2 -210.2 Total 723.8 583.7 3,103.7 2,963.6 Sales by geographic market ===== SIDA 19 ===== Sectra’s three-month interim report 2024/2025 19 (28) Recurring and non-recurring external revenue by business segment Group SEK million 3 months May–Jul 2024 3 months May–Jul 2023 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 Recurring revenue 482.3 397.2 1,810.0 1,724.9 Of which cloud recurring revenue, CRR 122.8 86.4 433.3 396.9 Non-recurring revenue 241.5 186.5 1,293.7 1,238.7 Total 723.8 583.7 3,103.7 2,963.6 Share of recurring revenue, % 66.6 68.0 58.3 58.2 Imaging IT Solutions SEK million 3 months May–Jul 2024 3 months May–Jul 2023 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 Recurring revenue 448.9 370.7 1,687.5 1,609.3 Of which cloud recurring revenue, CRR 117.6 83.0 412.9 378.3 Non-recurring revenue 190.1 148.3 979.8 938.0 Total 639.0 519.0 2,667.3 2,547.3 Share of recurring revenue, % 70.3 71.4 63.3 63.2 Secure Communications SEK million 3 months May–Jul 2024 3 months May–Jul 2023 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 Recurring revenue 27.3 22.8 99.4 94.9 Of which cloud recurring revenue, CRR – – – – Non-recurring revenue 50.1 33.5 288.5 271.9 Total 77.4 56.3 387.9 366.8 Share of recurring revenue, % 35.3 40.5 25.6 25.9 Business Innovation SEK million 3 months May–Jul 2024 3 months May–Jul 2023 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 Recurring revenue 5.8 3.7 22.0 19.9 Of which cloud recurring revenue, CRR 5.2 3.4 20.4 18.6 Non-recurring revenue 1.2 4.8 25.1 28.7 Total 7.0 8.5 47.1 48.6 Share of recurring revenue, % 82.9 43.5 46.7 40.9 Other Operations SEK million 3 months May–Jul 2024 3 months May–Jul 2023 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 Recurring revenue 0.3 0.0 1.1 0.8 Of which cloud recurring revenue, CRR – – – – Non-recurring revenue 0.2 – 0.2 – Total 0.5 0.0 1.3 0.8 Share of recurring revenue, % 60.0 100.0 84.6 100.0 ===== SIDA 20 ===== Sectra’s three-month interim report 2024/2025 20 (28) Note 5 Financial definitions and alternative performance measures The Group applies the European Securities and Markets Authority ( ESMA) Guidelines on Alternative Performance Measures. Alternat ive performance measures are applied since the company believes they provide valuable supplementary information for management and investors given that they play a central role when it comes to understanding and evaluating the Group’s operations. Share of recurring revenue Purpose Shows the portion of external sales that is recurring. Recurri ng revenue refers to revenue from customers for the provision of a good or service during the term of a contract, wherein the customer cannot continue to benefit from the full functionality of the good or service without ongoing payments and the revenue stream is expected to recur for more than 12 months. Recurring revenue mainly refers to revenue from subscription, support and maintenance agreements. The share delivered via the c loud is reported as cloud recurring revenue (CRR). Revenue from system im plementations, migration and one-time purchases of licenses ar e not recognized as recurring revenue. Calculation Recurring revenue divided by total external sales. Refer to Note 4. Recurring revenue churn SEK thousand 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 Recurring revenue from customer contracts that have concluded or not been renewed 7,511 7,247 Recurring revenue 1,810,088 1,724,940 Share of recurring revenue, % 0.4 0.4 Purpose Calculation Indicates the share of recurring revenue from customer contracts that have concluded or not been renewed during the latest rolling 12-month period. Recurring revenue from customer contracts that have concluded or not been renewed divided by total recurring revenue. Equity per share before and after dilution Jul 31, 2024 Jul 31, 2023 Apr 30, 2024 Equity, SEK thousand 1,654,220 1,386,349 1,569,591 Number of shares before and after dilution at the end of the period 192,667,489 192,667,489 192,667,489 Equity per share before and after dilution, SEK 8.59 7.20 8.15 Purpose Calculation Measures the company’s net value per share and shows the change in shareholder capital per share over time. Equity divided by the number of shares before and after dilution at the end of the period. Non-interest-bearing liabilities and interest-bearing liabilities SEK thousand Jul 31, 2024 Jul 31, 2023 Apr 30, 2024 Non-interest-bearing liabilities 1,471,828 1,263,838 1,609,559 Interest-bearing liabilities 45,884 78,000 31,788 Total liabilities 1,517,712 1,341,838 1,641,347 Purpose Calculation Indicates the proportion of the Company’s liabilities with and without interest. Included in the calculation of the debt/equity ratio and capital employed. Non-interest-bearing liabilities refers to liabilities without interest, such as accounts payable, advances from customers and tax liabilities. Interest- bearing liabilities refers to liabilities with interest, such as lease liabilities. ===== SIDA 21 ===== Sectra’s three-month interim report 2024/2025 21 (28) Cash flow per share before and after dilution 3 months May–Jul 2024 3 months May–Jul 2023 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 Cash flow from operations, SEK thousand -56,716 -98,298 367,907 326,326 Number of shares before and after dilution at the end of the period 192,667,489 192,667,489 192,667,489 192,667,489 Cash flow per share before and after dilution, SEK -0.29 -0.51 1.91 1.69 Purpose Calculation Shows the cash flow the company generated per share before capital investments and financing. Cash flow from operations divided by the number of shares before and after dilution at the end of the period. Ratio of contracted order bookings to net sales SEK thousand 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 Contracted order bookings 3,868,489 6,223,476 Net sales 3,103,704 2,963,607 Ratio of contracted order bookings to net sales 1.25 2.10 Purpose Calculation Provides an indication of demand for the company’s products and services. Contracted order bookings divided by net sales. Liquidity SEK thousand Jul 31, 2024 Jul 31, 2023 Apr 30, 2024 Current assets 2,437,958 2,184,430 2,522,148 Unutilized overdraft facilities 15,000 15,000 15,000 Current liabilities 1,444,450 1,269,923 1,588,763 Liquidity 1.7 1.7 1.6 Purpose Calculation Shows the company’s current ability to pay. Current assets plus unutilized overdraft facility divided by current liabilities. Average no. of employees Purpose Calculation Shows full-time positions in a certain period. Average number of full-time employees during the period. Unadjusted exchange rates – sales 3 months May–Jul 2024 3 months May–Jul 2023 Full-year May–Apr 2023/2024 Nominal change, % 24.0 20.6 26.1 Exchange-rate effect, % 0.7 -6.4 -3.1 Change in unadjusted exchange rates, % 24.7 14.2 23.0 Purpose Calculation Provides an indication of changes in financial measures for unadjusted exchange rates. Amounts for the current year restated at last year’s average exchange rates less last year’s amounts at last year’s average exchange rates, divided by last year’s amounts at last year’s rates. ===== SIDA 22 ===== Sectra’s three-month interim report 2024/2025 22 (28) Unadjusted exchange rates – operating profit 3 months May–Jul 2024 3 months May–Jul 2023 Full-year May–Apr 2023/2024 Nominal change, % 44.0 7.7 13.6 Exchange-rate effect, % 1.8 -13.0 -5.6 Change in unadjusted exchange rates, % 45.8 -5.3 8.0 Purpose Calculation Provides an indication of changes in financial measures for unadjusted exchange rates. Amounts for the current year restated at last year’s average exchange rates less last year’s amounts at last year’s average exchange rates, divided by last year’s amounts at last year’s rates. Unadjusted exchange rates – recurring revenue 3 months May–Jul 2024 3 months May–Jul 2023 Full-year May–Apr 2023/2024 Nominal change, % 21.4 27.9 26.8 Exchange-rate effect, % 0.6 -6.5 -3.1 Change in unadjusted exchange rates, % 22.0 21.4 23.7 Purpose Calculation Provides an indication of changes in financial measures for unadjusted exchange rates. Amounts for the current year restated at last year’s average exchange rates less last year’s amounts at last year’s average exchange rates, divided by last year’s amounts at last year’s rates. Order bookings – guaranteed Purpose Calculation Indicates future revenue in the company. The share of contracted order bookings that corresponds to what the customer has undertaken to purchase when the contract is entered into. Order bookings – contracted Purpose Calculation Indicates future revenue in the company. The value of orde rs received that corresponds to what the customer has procured and intends to purchase during the term of the contract. P/E ratio SEK 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 Share price at end of period 243.40 219.20 Earnings per share for the rolling 12-month period 2.32 2.22 P/E ratio, multiple 104.9 98.7 Purpose Calculation Shows how the market values the company’s profits and how long it may take for the shareholders to get a return on an investment in the share. Share price at the end of the period divided by earnings per share for the most recent rolling 12-month period before dilution. ===== SIDA 23 ===== Sectra’s three-month interim report 2024/2025 23 (28) Earnings per share before and after dilution 3 months May–Jul 2024 3 months May–Jul 2023 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 Profit for the period, SEK thousand 80,401 61,556 447,233 428,388 Average number of shares before and after dilution 192,667,489 192,667,489 192,667,489 192,667,489 Earnings per share before and after dilution, SEK 0.42 0.32 2.32 2.22 Purpose Calculation Shows each share’s participation in the company’s earnings during the reporting period. Profit/loss after tax divided by the average number of shares before or after dilution. This performance measure is defined in accordance with IFRS. Return on equity SEK thousand 3 months May–Jul 2024 3 months May–Jul 2023 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 Profit for the period 80,401 61,556 447,233 428,388 Equity at start of period 1,569,591 1,296,669 1,386,349 1,296,669 Equity at end of period 1,654,220 1,386,349 1,654,220 1,569,591 Average equity 1,611,906 1,341,509 1,520,285 1,433,130 Return on equity, % 5.0 4.6 29.4 29.9 Purpose Calculation Shows the return on capital attributable to the Parent Company owners. Profit for the period divided by average equity. Return on capital employed (ROCE) SEK thousand 3 months May–Jul 2024 3 months May–Jul 2023 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 Profit after financial items 101,260 77,526 576,508 552,774 Financial expenses -561 -424 -3,421 -3,284 Average capital employed 1,650,742 1,421,640 1,582,227 1,490,155 Return on capital employed, % 6.2 5.5 36.7 37.3 Purpose Calculation Shows profitability based on how much capital is used in the operations. Profit after financial items plus financial expenses divided by average capital employed. Operating margin SEK thousand 3 months May–Jul 2024 3 months May–Jul 2023 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 Operating profit 99,815 69,313 548,312 517,810 Net sales 723,836 583,739 3,103,704 2,963,607 Operating margin, % 13.8 11.9 17.7 17.5 Purpose Calculation Measures operational profitability. This measure is used for the purpose of management by objectives in the operations. Operating profit divided by net sales. ===== SIDA 24 ===== Sectra’s three-month interim report 2024/2025 24 (28) Operating profit per share 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 Operating profit, SEK thousand 548,312 517,810 Number of shares before dilution 192,667,489 192,667,489 Operating profit per share, SEK 2.85 2.69 Purpose Calculation Shows earnings per share before interest and taxes. O perating profit divided by the number of shares before dilution on the balance-sheet date. Debt/equity ratio SEK thousand Jul 31, 2024 Jul 31, 2023 Apr 30, 2024 Interest-bearing liabilities 45,884 78,000 31,788 Equity 1,654,220 1,386,349 1,569,591 Debt/equity ratio 0.03 0.06 0.02 Purpose Calculation Shows to what extent the operations are financed by loans and describes the company’s financial risk. Interest-bearing liabilities divided by equity. Equity/assets ratio SEK thousand Jul 31, 2024 Jul 31, 2023 Apr 30, 2024 Equity 1,654,220 1,386,349 1,569,591 Total assets 3,171,932 2,728,187 3,210,938 Equity/assets ratio, % 52.2 50.8 48.9 Purpose Calculation Shows the portion of assets financed with equity. This measure is used for the purpose of management by objectives in the operations. Equity divided by total assets on the balance-sheet date. Capital employed SEK thousand Jul 31, 2024 Jul 31, 2023 Apr 30, 2024 Total assets 3,171,932 2,728,187 3,210,938 Non-interest-bearing liabilities 1,471,828 1,263,838 1,609,559 Capital employed 1,700,104 1,464,349 1,601,379 Purpose Calculation Shows the portion of the company’s assets that has been borrowed from, for example, the company’s owners or external lenders, and shows the company’s profitability in relation to externally financed capital and equity. Total assets reduced by non-interest-bearing liabilities. ===== SIDA 25 ===== Sectra’s three-month interim report 2024/2025 25 (28) Growth in operating profit per share over a five-year period SEK 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 Operating profit per share before dilution 2.85 2.69 Operating profit per share before dilution five years earlier 1.20 1.23 Growth in operating profit per share before dilution over a five-year period, % 138.0 118.8 Purpose Calculation Shows the growth of the operations over a five-year period. This measure is used for the purpose of management by objectives in the operations. Operating profit per share on the balance-sheet date less operating profit per share on the balance-sheet date five years earlier divided by operating profit per share on the balance-sheet date five years earlier. Profit margin SEK thousand 3 months May–Jul 2024 3 months May–Jul 2023 12 months Aug 2023– Jul 2024 Full-year May–Apr 2023/2024 Profit after financial items 101,260 77,526 576,508 552,774 Net sales 723,836 583,739 3,103,704 2,963,607 Operating margin, % 14.0 13.3 18.6 18.7 Purpose Calculation Shows a comparison of profitability regardless of corporate tax rate. Profit after financial items divided by net sales. KEY FIGURES AND OTHER INFORMATION Key figures 3 months Jul 31, 2024 3 months Jul 31, 2023 12 months Jul 31, 2024 Full-year Apr 30, 2024 Contracted order bookings, SEK million 615.0 2,970.0 3,868.5 6,223.5 of which guaranteed order bookings, SEK million 543.1 344.4 3,418.1 3,219.4 Operating margin, % 13.8 11.9 17.7 17.5 Profit margin, % 14.0 13.3 18.6 18.7 Average no. of employees 1,222 1,112 1,168 1,140 Cash flow per share, SEK 1, 2 -0.29 -0.51 1.91 1.69 P/E ratio, multiple n/a n/a 104.9 98.7 Share price at end of period, SEK 243.40 168.60 243.40 219.20 Return on equity, % 5.0 4.6 29.4 29.9 Return on capital employed, % 6.2 5.5 36.7 37.3 Equity/assets ratio, % 52.2 50.8 52.2 48.9 Liquidity ratio, multiple 1.7 1.7 1.7 1.6 Equity per share, SEK 2 8.59 7.20 8.59 8.15 1 Cash flow from operations. 2 Before and after dilution. ===== SIDA 26 ===== Sectra’s three-month interim report 2024/2025 26 (28) Condensed consolidated income statements by quarter SEK million 2024/2025 2023/2024 2022/2023 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Net sales 723.8 898.1 694.0 787.7 583.7 724.7 580.3 561.7 484.1 Capitalized work for own use 12.9 16.3 19.3 17.9 18.0 20.6 14.7 11.5 9.0 Other operating income 2.7 1.3 0.6 2.2 1.3 0.5 0.5 0.4 0.1 Operating expenses -613.5 -687.0 -614.9 -607.5 -509.2 -524.7 -485.2 -443.9 -406.6 Depreciation/amortization and impairment -26.1 -31.3 -24.7 -23.6 -24.5 -24.3 -23.3 -22.1 -22.2 Operating profit 99.8 197.4 74.4 176.7 69.3 196.8 87.0 107.6 64.4 Total financial items 1.5 14.7 -1.5 13.6 8.2 5.1 4.1 10.7 3.8 Profit after financial items 101.3 212.1 72.9 190.3 77.5 201.9 91.1 118.3 68.2 Tax on earnings for the period -20.9 -53.6 -15.1 -39.7 -16.0 -47.3 -18.8 -24.4 -14.0 Profit for the period 80.4 158.5 57.8 150.6 61.6 154.6 72.3 93.9 54.1 Key figures by quarter 2024/2025 2023/2024 2022/2023 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Contracted order bookings, SEK million 615.0 896.9 1,853.6 503.0 2,970.0 1,186.9 549.2 664.2 2,235.4 of which guaranteed order bookings 543.1 762.3 1,652.5 460.1 344.4 811.6 484.0 605.6 705.3 Recurring revenue, SEK million 482.3 463.5 434.7 429.6 397.2 376.6 356.4 316.4 310.4 of which cloud services (CRR) 122.8 113.8 103.2 93.4 86.4 72.9 72.1 59.6 50.0 Operating margin, % 13.8 22.0 10.7 22.4 11.9 27.2 15.0 19.2 13.3 Earnings per share, SEK 1 0.42 0.82 0.30 0.78 0.32 0.80 0.38 0.49 0.28 Cash flow per share, SEK 1 -0.29 0.69 1.21 0.30 -0.51 1.98 0.43 0.20 -0.33 Return on equity, % 5.0 10.7 4.2 11.0 4.6 12.7 6.5 8.5 4.9 Return on capital employed, % 6.2 14.2 5.3 13.5 5.5 15.6 7.8 10.2 5.8 Equity/assets ratio, % 52.2 48.9 49.2 49.8 50.8 47.4 50.4 52.3 54.9 Equity per share, SEK 1 8.59 8.15 7.20 6.96 7.20 6.73 5.94 5.54 5.95 Share price at end of period, SEK 243.40 219.20 195.14 120.60 168.60 161.70 147.44 146.40 185.90 1 Before and after dilution. Five-year summary 2023/2024 2022/2023 2021/2022 2020/2021 2019/2020 Contracted order bookings, SEK million 6,223.5 4,635.7 2,320.2 2,651.6 1,816.0 Net sales, SEK million 2,963.6 2,350.8 1,949.1 1,632.4 1,661.1 Operating profit, SEK million 517.8 455.7 383.4 350.1 295.3 Profit after financial items, SEK million 552.8 479.4 394.5 348.2 303.0 Profit for the period, SEK million 428.4 375.0 314.8 275.5 237.4 Operating margin, % 17.5 19.4 19.7 21.4 17.8 Profit margin, % 18.7 20.4 20.2 21.3 18.2 Earnings per share before dilution, SEK 1 2.22 1.95 1.63 1.43 1.24 Earnings per share after dilution, SEK 1 2.22 1.95 1.63 1.43 1.23 Redemption program per share/dividend, SEK 1 1.10 1.10 1.00 0.90 0.90 Share price at end of year, SEK 1 219.20 161.70 124.80 121.00 84.00 P/E ratio, multiple 98.7 82.9 76.6 84.6 68.0 Return on equity, % 29.9 31.5 31.9 32.2 30.7 Return on capital employed, % 37.3 38.2 37.5 37.4 36.8 Equity per share before dilution, SEK 1 8.15 6.73 5.61 4.65 4.24 Equity per share after dilution, SEK 1 8.15 6.73 5.61 4.65 4.24 Equity/assets ratio, % 48.9 47.4 49.3 54.2 54.1 1 Comparative figures per share have been restated due to the 5:1 share split that Sectra carried out in the second quarter of 21/22. ===== SIDA 27 ===== Sectra’s three-month interim report 2024/2025 27 (28) Exchange rates Currency Average rates in SEK Closing rates in SEK 3 months May–Jul 2024 3 months May–Jul 2023 Δ % Jul 31, 2024 Jul 31, 2023 Δ % US dollar, 1 USD 10.63 10.67 -0.4 10.69 10.46 2.2 Euro, 1 EUR 11.45 11.62 -1.5 11.56 11.53 0.3 British pound, 1 GBP 13.54 13.52 0.1 13.73 13.47 1.9 GLOSSARY DNA sequencing A process for determining genetic material, DNA, in a sample. Genomics The study of genetic material, meaning an organism’s DNA. In medicine, a patient’s genetic material is studied to increase understanding of the causes of disease. In cancer diseases, for example, a tumor’s mutations are studied in DNA. The genetic information plays an important role in diagnosing cancer and customizing treatment, known as precision medicine. Cardiology/cardiovascular diseases The field of medicine dealing with the functions and diseases of the heart. Critical infrastructure Basic infrastructure that is essential for the functioning of society, such as roads, bridges and electricity and water supply. Encryption Equipment that uses mathematical manipulations (algorithms and keys) to encrypt information, so that it can be interpreted or read only by the intended recipient. To read encrypted information, the recipient must have the correct key and algorithm. The cloud/cloud solutions From the term cloud computing, meaning delivering services and sharing IT infrastructure over the internet. Ophthalmology A specialist medical area for the diagnosis and treatment of eye disorders. Orthopaedics A surgical specialty for disorders affecting the musculoskeletal system. Pathology/histopathology/microscopy A specialized medical area that uses tissues and body fluids for diagnostic purposes. Precision medicine Providing patient care that is highly adapted to individual conditions. Advanced diagnostic analyses are a cornerstone of precision medicine. Radiology A health science discipline and medical specialty that uses technologies for imaging the human body, such as X-ray, magnetic resonance imaging (MRI) and ultrasound. Sectra One/Sectra One Cloud A subscription for Sectra’s enterprise imaging solution. Under the new model, customers pay a more evenly distributed subscription fee every year instead of paying a higher license fee for software at the start of the contract and a lower rolling service fee. The fee is determined based on the functionality used and the number of different services utilized. When Sectra One is sold as fully cloud-based services, it is referred to as Sectra One Cloud. High assurance/High assurance products Cryptographic methods and other measures designed to prevent unauthorized parties from accessing or influencing information in telecom and IT systems. The high assurance products that Sectra provides are approved by one or more nations and, for certain products, by the EU and NATO. ===== SIDA 28 ===== Sectra’s three-month interim report 2024/2025 28 (28) 0 , ABOUT SECTRA Vision To contribute to a healthier and safer society. Mission statements To increase the effectiveness of healthcare, while maintaining or increasing the quality of care. To strengthen the stability and efficiency of society’s most important functions through solutions for critical IT security. Operating areas/business models Imaging IT Solutions helps hospitals across the world to become more efficient, enabling them to care for more patients and save more lives. Increased use of medical images and aging populations that are living longer pose huge challenges to healthcare. Sect ra’s IT solutions and services for medical diagnostic imaging enable gr eater efficiency and contribute to healthcare advancements. Sectra has exceeded 2,500 installations of medical IT systems, and customers include some of the largest healthcare providers in the world. Secure Communications helps society’s critical functions, government officials and diplomats to use modern technology to exchange information securely, thereby contributing to a stable and secure society. Sectra’s solutions and services increase cybersecurity by protecting some of society’s most sensitive information and communications. Several of the business area’s products are approved by the EU, NATO, and national security authorities. Business Innovation gathers smaller activities that could eventually lead to major growth in Sectra’s main areas or related niches. Group-wide strategies for value creation and sustainable business development Customer value is the top priority Customers and customer satisfaction ar e always assigned top priority to enable long-term growth. Close relationships with demanding customers ensure that Sectra’s solutions meet market demands for quality, functionality and usability. A motivating corporate culture A corporate culture that motivates and inspires the company’s employees to solve customer problems and constantly drive improvement. All so we can meet—and in many cases exc eed—customer expectations. Constant innovation Close cooperation with customers, unive rsities and industrial partners in order to identify needs and ideas, combined with a corporate culture where management encourages the employees to test out new ideas and projects. Geographic expansion International expansion mainly in areas and regions where Sectra holds an established position. Expansion is primarily to be achieved through organic growth, in certain cases supplemente d by acquisitions that strengthen the Group’s organic growth. For more information, visit https://investor.sectra.com 7 good reasons to invest in Sectra International niche markets with strong growth IT for healthcare and cybersecurity for critical social functions are rapidly changing markets that society needs to invest in. This creates major growth opportunities for companies such as Sectra. Stability, profitability and long-term growth Sectra has an over 45-year history of growth and pro- fitability. Over 50% of the company’s sales comprise recurring revenue from long-term customer contracts. Customer-focused corporate culture A strong corporate culture clearly focused on customer value and employees who are passionate about making a difference lead to satisfied customers. To safeguard our corporate culture, growth is primarily organic. Strong brand with multinational reach Sectra is an established brand in niche areas where trust and stable products are highly important success factors. We have a multinational reach, with thousands of customers worldwide. Innovation By continuously investing in new and enhanced products and services, as well as how they are packaged and delivered, we create value for our customers. We also have a self-financed portfolio of research and business projects with the potential to add significant value in the future. Sustainable business model Contributing to healthier and safer societies is the foundation of Sectra’s operations and business model. Helping our customers improve the efficiency and quality of patient care and increase cybersecurity in critical social functions is our most significant contribution to a sustainable society. Long-standing owners and dedicated management The principal owners, who have been part of the company since the 1980s, have firm dedication to the long-term development of the company, and all members of Group Management are shareholders.