Bioservo Interim Report Quarter 3 2021

Bioservo Technologies AB (publ) Interim Report 1 January - 30 September

Bioservo Technologies AB

Interim Report January - September 2021

Third quarter 2021 in brief

• Net sales SEK 2.3 M (1.8)

• EBITDA amounted to SEK -5.1 M (-4.8)

• EBIT amounted to SEK -6.3 M (-5.8)

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Bioservo Technologies AB (publ) Interim Report 1 January - 30 September

Interim report, 1 January to 30 September 2021

Third quarter in figures

• Net sales of SEK 2.3 M (1.8)
• EBITDA of SEK -5.1 M (-4.8)
• EBIT of SEK -6.3 M (-5.8)
• Earnings for the period amounted to SEK -6.3 M (-5.8)
• Earnings per share before and after dilution amounted to SEK -0.40(-0.41)
• Cash flow from operating activities for the period amounted to SEK -7.4 M (-1.0)

First nine months in figures

• Net sales of SEK 4.8 M (9.6)
• EBITDA of SEK -22.5 M (-15.2)
• EBIT of SEK -26.2 M (-18.2)
• Earnings for the period was SEK -26.2 M (-18.2)
• Earnings per share before and after dilution amounted to SEK -1.65(-1.27)
• Cash flow from operating activities for the period amounted to SEK -25.8M (-13.3)
• On 30 of September, cash and cash equivalents were SEK 61.3 M (42.9)

Significant events during the period

• During the period, a directed new share issue was carried out and SEK 36.3 million was added to the company before transaction costs. The issue was conducted to strengthen Bioservo's commercial ability to carry out successful launches.
• Bioservo has started delivering Ironhand 2.0 to distributors and customers. The majority has been delivered to EUROPE TECHNOLOGIES GOBIO, with which Bioservo has an agreement to purchase 100 Ironhand® systems to a value of SEK 4.2 million over a period of ten months.
• The preparations for an international launch of the next generation of Carbonhand® in 2022 is progressing. As part of our strategy to strengthen the network of distributors in selected markets, we will use the international trade fair Medica 2021 in Germany in November as a starting point.
• Madeleine Börjesson appointed as new CFO and member of the management team. Madeleine succeeds Jacob Michlewicz, who has been interim CFO until now. Madeleine has a bachelor's degree in business administration from the University of Gothenburg and has long and broad experience of leading international financial teams.

Events after the end of the period

• Bioservo is initiating a research project to investigate how brain activity is affected by the use of a soft active exoskeleton, and thereby potentially improve rehabilitation for stroke patients. The project is a research collaboration between Bioservo Technologies, Aleris Rehab Station Stockholm, Karolinska Institute and the Royal Institute of Technology.

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Bioservo Technologies AB (publ) Interim Report 1 January - 30 September

Financial overview

		Jul-Sep 2021			Jul-Sep 2020		Jan-Sep 2021			Jan-Sep 2020		Full year 2020
Net sales, SEK 000s	2 340			1 804		4 799			9 626		11 662
EBITDA, SEK 000s		-5 137			-4 789		-22 499			-15 160		-20 636
EBIT, SEK 000s		-6 293			-5 804		-26 176			-18 184		-26 326
Earnings for the period, SEK 000s		-6 300			-5 804		-26 183			-18 181		-26 323
Earnings per share before dilution, SEK		-0,40			-0,41		-1,65			-1,27		-1,82
Earnings per share after dilution, SEK		-0,40			-0,41		-1,65			-1,27		-1,82
Cash and cash equivalents, SEK 000s		61 264			42 850		61 264			42 850		52 564
Cash flow from operating activities for		-7 439			-999		-25 846			-13 250		-16 586
the period, SEK 000s
Equity, SEK 000s		71 370			57 082		71 370			57 082		62 311
Total assets, SEK 000s		79 581			63 232		79 581			63 232		70 616
Equity/assets ratio, %		90		90		90		90	88
Total no. of shares		18 957 985			14 298 321		18 957 985			14 298 321		15 798 321
Average no. of shares		15 901 354			14 298 321		15 833 043			14 298 321		14 438 047
R&D employees		10		14		12		15	13
Average no. of employees		28		28		29		28	28

Definitions

Net sales

Revenue from the sale of goods related to the company's core operations.

EBITDA

Earnings before interest, taxes, depreciation and amortization.

EBIT

Earnings before interest and taxes.

Cash and cash equivalents

Assets that are cash or can be converted into cash immediately.

Cash flow from operating activities

Cash flow before cash flow from investing and financing activities.

Equity/assets ratio

Equity expressed as a percentage of total assets.

Average number of employees

Calculated as the total number of hours worked divided by the number of normal working hours during the period.

Earnings (profit or loss) per share before and after dilution

Earnings divided by the weighted average number of shares during the period before and after dilution. If the earnings are negative, the number of shares before dilution is also used for the calculation after dilution.

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Bioservo Technologies AB (publ) Interim Report 1 January - 30 September

About Bioservo Technologies

Bioservo Technologies AB (publ) is a world leading company in wearable muscle strengthening systems for people in need of extra strength and endurance. All our innovative products and systems are designed to keep people strong, healthy and efficient.

The company has a unique global position within soft exoskeleton technology for the hand, both for industrial applications to improve the health for workers and to improve quality of life for people with reduced muscle strength.

Bioservo Technologies was founded in 2006 in collaboration between researchers at the Royal Institute of Technology and a doctor at Karolinska University Hospital. Bioservo Technologies is a Swedish public limited For more information, please visit www.bioservo.com

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Bioservo Technologies AB (publ) Interim Report 1 January - 30 September

CEO Petter Bäckgren comments on the Third quarter of 2021

Bioservo sums up an eventful quarter with sales of SEK 2.3 million, which corresponds to an increase of approximately 30% compared to the comparison period. The sales result indicates that the market is on the way to recovering after Covid-19. During the period, deliveries of Ironhand to our French distributor were also initiated within the framework of the agreement entered into in the spring to purchase 100 systems with ongoing deliveries of 10 units per month.

Launch of Ironhand 2.0

During the period, the focus has been on introducing Ironhand 2.0. The updated product has a number of improvements that enhance the experience, broaden the application area and enable objective risk assessments through a completely unique app with built-in scientific risk models. The response from distributors and customers is consistently very positive and we are confident that the new product will begin to be used in companies to an increasing extent.

Directed share issue completed

During the period, a directed share issue was carried out and SEK 36.3 million was added to the company before transaction costs. The issue was carried out to strengthen Bioservo's commercial ability to carry out successful launches of Ironhand 2.0 and an update of Carbonhand 2.0 next year.

Relieved Covid-19 restrictions enable increased sales efforts

After a long period of severe restrictions on visits to production facilities in both Europe and the United States, we are now beginning to see a return to more normal conditions. As our distributors begin to gain access to customers, various evaluation projects for Ironhand are initiated. As part of our strategy to focus our efforts on the distributors who have the greatest potential, we carry out joint sales efforts towards large international customers.

Bioservo´s Italian distributor Tecno Italia is one of the companies that works intensively to introduce Ironhand to its customers, primarily in the automotive industry. By staff from Bioservo being able to be physically present and show how the new Ironhand 2.0 can reduce the risk of strain injuries, we have contributed to creating new sales opportunities.

Also in the US, Bioservo's distributors have finally been able to implement on-site sales efforts with customers during the quarter, initiatives that have already generated new sales of Ironhand 2.0 to companies in various industries; manufacturing industry, construction industry and production of consumer goods.

The French market continues to lead the way

As we have previously described, France is far ahead in terms of measures against work-related strain injuries. An example is Naval Group, Europe's leading company in naval defense, which is one of the companies that has been involved early and carried out positive tests with Ironhand and then uses the system for selected tasks in production. They have now chosen to invest in additional systems to broaden the use to more work tasks.

Other deliveries of Ironhand 2.0 to our French partners Gobio and Loxam have taken place according to the delivery plan previously communicated.

Carbonhand®

The work of preparing an international launch of the next generation of Carbonhand® 2.0 in 2022 is progressing. As part of our strategy to strengthen the network of distributors, we will be present at Medica 2021 in Germany, one of the largest global trade fairs within Med Tech. During the fair, a prelaunch of the

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