Biotage AB (publ) Interim report January – September 2021

Biotage AB (publ)

Interim Report January - September 2021

Positive development creates opportunities

Positive development creates opportunities

July-September

• Net sales amounted to SEK 305 (263) million, an increase of 16.3 percent and an organic* growth of 17.8 percent.
• The operating profit amounted to SEK 68 (61) million.
• The operating margin was 22.3 percent (23.1).
• Profit after tax amounted to SEK 53 (37) million.
• Earnings per share were SEK 0.81 (0.57) before and after dilution.
• Cash flow from operations increased to SEK 89 (74) million.
• Net cash* as of September 30 amounted to SEK 244 (157) million.
• Liquid assets amounted to SEK 359 (371) million.
• Liabilities to credit institutions amounted to SEK 0 (110) million.
• On July 1, it was announced that Maja Nilsson has been appointed as the new CFO, starting October 1.

January-September

• Net sales amounted to SEK 890 (794) million, an increase of 12.1 percent and an organic* growth of 20.3 percent.
• The operating profit amounted to SEK 210 (147) million.
• The operating margin was 23.6 percent (18.5).
• Profit after tax amounted to SEK 159 (131) million.
• Earnings per share were SEK 2.44 (2.01) before and after dilution.
• Cash flow from operations increased to SEK 249 (192) million.
• On May 10, Annette Colin announced that she would be resigning from her position as CFO. On July 1, Biotage announced that Maja Nilsson has been appointed as the new CFO, starting October 1.

Significant events after the end of the reporting period

• On October 20, Biotage acquired ATDBio, Ltd.
• Maja Nilsson took office as Biotage's new CFO on October 1.

*See definitions on pages 21-22

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Positive development creates opportunities

Financial overview

Third quarterNine-month periodFull year

Amounts in SEK millions	Q3 2021	Q3 2020	Jan-Sep 2021	Jan-Sep 2020	2020
Net sales	305	263	890	794	1,092
Change, %	16.3%	-7.1%	12.1%	-2.3%	-0.8%
of which:
- Organic growth, %	17.8%	-2.7%	20.3%	-2.1%	1.4%
- Currency effects, %	-1.5%	-4.4%	-8.2%	-0.2%	-2.2%
- Acquistions/divestments, %	-	-	-	0.0%	0.0%
Gross profit	183	161	543	488	667
Gross margin, %	60.0%	61.1%	61.0%	61.5%	61.0%
Operating profit (EBIT)	68	61	210	147	206
Operating margin (EBIT), %	22.3%	23.1%	23.6%	18.5%	18.9%
Profit for the period	53	37	159	131	175
Earnings per share, SEK	0.81	0.57	2.44	2.01	2.69
Cashflow from operating activities	89	74	249	192	279

Net sales, SEK millions

350								1 200
300								1 150
250
200								1 100
150								1 050
100
50								1 000
0								950
Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
	2019			2020			2021
				Sales Q		Sales LTM

Operating profit, SEK millions

90								300
80								250
70
60								200
50								150
40
30								100
20								50
10
0								0
Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
	2019			2020			2021
				EBIT Q	EBIT LTM

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Positive development creates opportunities

Distribution of net sales

Geographic market

305	+16%
263
41%	+12%
43%

Quarter	26%	28%		+24%
		31%	31%		+16%
			2020 Q3	2021 Q3	Growth
					1 188		+10%
		1 083
					39%		-1%
		43%
Last twelve					30%
	26%		+25%
months
		31%	31%		+11%
			2020 Q3	2021 Q3	Growth
				Americas		EMEA		APAC

System and aftermarket

				305			+16%
	263
				48%			+9%
	51%
				10%			+4%
	11%
	38%	42%			+30%
		2020 Q3	2021 Q3	Growth
				1 188			+10%
	1 083
				48%			+10%
	48%
	11%	10%			+4%
	42%			+11%
	41%
		2020 Q3	2021 Q3	Growth
			System		Consumables
			Service

Product areas

			305				+16%
263
			52%			+13%
54%
			30%			+8%
33%
10%	14%			+65%
	3%			4%				+19%
2020 Q3	2021 Q3	Growth
			1 188			+10%
1 083
			51%			+9%
51%

35%

32%

+0%

11%

14%

+47%

3%

3%

+0%

2020 Q3

2021 Q3

Growth

Organic Chemistry

Scale-up

Analytical Chemistry

Biomolecules

*See definitions on pp. 21-22

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Message from the CEO

Message from the CEO

Our efforts are producing good results

Biotage's profitable growth journey has continued in the third quarter with a new sales record and strong cash flow. Our strategic focus is on finding attractive niche areas while making our business more efficient and sustainable. The positive development will enable investments in the future.

In the third quarter of the year, Biotage's organic growth continued at a rate that is significantly higher than for the market as a whole. We have maintained double-digit organic and reported growth in both our regions, the Americas and International. As in the second quarter, we achieved sales of more than SEK 300 million with an operating margin, EBIT, which exceeded our long-term target of 20%. We see a good geographical mix on both sides of the Atlantic, and a healthy distribution between aftersales and system sales of 52% and 48%, respectively, driven by consumables.

Our ongoing efforts to generate new revenue and improve operational efficiency are paying off. Some time ago, we set an internal goal to strengthen our balance sheet and cash flow. The fact that we have now achieved this gives us good conditions to invest for continued growth. A recent example of this is the acquisition of the British company ATDBio, which brings us expertise and key platform solutions in the rapidly growing sector for the synthesis and purification of DNA and RNA-oligonucleotides.

In our efforts to increase efficiency, quality and sustainability in our operations through digitalization, we worked intensively during the quarter to implement the production module in our business system at our facility in Salem, NH, USA. This was put into operation on October 1. At our facility in Cardiff, Wales, the new large- scale flash chromatography unit has been in full operation for a couple of months. Moving all other column chromatography to another new and larger unit has begun and is expected to be completed during the fourth quarter. Work is also under way

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