CellaVision : Interim Report Q3 2023

Q3

CellaVision

Interim Report

January-September 2023

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

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.

Simon Østergaard The gross margin decreased as a result of the

President & CEO 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

1. 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

CellaVision Interim Report January-September 2023 / Page 2

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

CellaVision Interim Report January-September 2023 / Page 3

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

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	Jul-Sep	Jul-Sep	Growth	Jan-Sep	Jan-Sep	Growth
(MSEK)	2023	2022	%	2023	2022	%
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%

CellaVision Interim Report January-September 2023 / Page 5

Research and development

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.

CellaVision Interim Report January-September 2023 / Page 6

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: [e-mail], 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.

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.

Simon Østergaard

President/CEO

Lund, October 25, 2023

The interim report has been subject to review by the company's auditors

CellaVisionCellaVisionInterimIntReportrimReportJanuaryJanuary-September-June2023 / Page 7

Income statement in summary and consolidated statement of comprehensive income, Group

	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

CellaVision Interim Report January-September 2023 / Page 8

Per share data

	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

Quarterly earnings trend

	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

CellaVision Interim Report January-September 2023 / Page 9

Balance sheet in summary, Group

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

Deferred tax liability

Other provisions

Long-term debt, interest-bearingShort-term debt, interest-bearingShort-term debt, non interest-bearing Trade payables

Warranty provisions

Total equity and liabilities

677,893	605,904	659,671	641,628
58,245	51,205	57,510	52,925
5,086	5,656	5,169	3,740
32,711	69,430	43,155	60,364
43,316	41,893	44,034	42,131
48,233	48,748	45,869	40,252
27,099	34,805	40,953	47,864
1,860	2,855	1,833	2,843
894,442	860,496	898,192	891,748

Consolidated statement of changes in equity, Group

	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

CellaVision Interim Report January-September 2023 / Page 10