Revenio Group Corporation: Interim report January 1 - March 31, 2022

Revenio Group Corporation, Stock exchange release, April 28, 2022 at 9.00 a.m. (EEST)

Revenio Group Corporation: Interim report January 1 - March 31, 2022

Strong start for the year driven by Europe and US

The figures in parentheses refer to the corresponding period in the previous year unless otherwise stated.

January – March 2022

• Net sales totaled EUR 20.2 (16.8) million, showing an increase of 20.5%
• The currency-adjusted growth of net sales in January–March was 17.1%
• Operating profit was EUR 5.6 (4.6) million, representing 27.5% of net sales and growth of 20.6%
• The EUR 0.6 million non-recurring costs of the Oculo acquisition had a negative impact on the operating profit for the comparison period. Compared to the adjusted operating profit for the comparison period, the operating profit increased by 6.0%.
• EBITDA was EUR 6.4 (5.3) million, up 21.0%
• Cash flow from operations totaled EUR -0.2 (0.6) million. Cash flow from operations was affected by the payout of annual short and long-term incentives.
• Undiluted earnings per share came to EUR 0.176 (0.141)
• The Annual General Meeting was held on April 8, 2022 after the review period. Dividend was set at EUR 0.34 and paid on April 21, 2022.

Key consolidated figures, EUR million

	1-3/2022	1-3/2021	Change-%	1-12/2021
Net sales	20.2	16.8	20.5	78.8
Currency-adjusted sales	19.3	16.5	17.1	79.6
Gross margin	14.7	12.0	22.1	55.8
Gross margin - %	72.6	71.7	1.0	70.8
EBITDA	6.4	5.3	21.0	25.7
EBITDA-%	31.7	31.5	0.1	32.7
Adjusted EBITDA	6.4	5.9	8.0	26.4
Adjusted EBITDA - %	31.7	35.3	-3.6	33.5
Operating profit, EBIT	5.6	4.6	20.6	22.1
Operating profit-%, EBIT	27.5	27.5	0.0	28.1
Adjusted Operating profit, EBIT	5.6	5.2	6.0	23.4
Adjusted Operating profit-%, EBIT	27.5	31.3	-3.8	29.7
Return on investment-%, ROI	5.6	5.2	0.4	22.4
Return on equity-%, ROE	5.8	5.6	0.2	23.4
Undiluted earnings per share	0.176	0.141	24.8	0.652
	Mar 31, 2022	Mar 31, 2021	Change, %-point	Dec 31, 2021
Equity ratio-%	67.4	60.3	7.1	63.0
Net gearing-%	0.8	6.5	-5.7	-1.0

Financial guidance for 2022

Revenio Group’s exchange rate-adjusted net sales are estimated to grow strongly from the previous year and profitability, excluding non-recurring items, is estimated to remain at a good level.

President and CEO Jouni Toijala comments on the first quarter of 2022:

“The first quarter performance from our team was excellent. Our net sales increased by 20.5% to EUR 20.2 million, and the operating profit was EUR 5.6 million or 27.5% of net sales. It is important to note that the adjusted comparison period does not include any development costs for the software solutions. Both of our product groups saw good demand, with very strong growth in sales of retinal imaging devices. The very strong sales growth was driven by the competitive positioning of devices, and our continued success in gaining market share. In the coming years, we believe our retinal imaging devices will grow faster than our intraocular pressure measurement devices, as we have previously guided.

During the first quarter demand was strong in all our key markets. In the US and in Europe the sales volume grew, particularly in Italy, the United Kingdom, Sweden, and the Netherlands. The COVID-19 situation in Asia is creating some challenges and making it difficult to predict the future.

Our software solutions are playing an increasingly important role in eye care pathways. We launched iCare ILLUME, a software solution for the care pathway of diabetic retinopathy after the reporting period. Patient images taken with the iCare DRSplus fundus imaging system are automatically transferred to our iCare ILLUME software cloud service. An AI-based report will be generated instantly. The iCare ILLUME can be used for other eye diseases in the future. This allows us to utilize the high-quality data generated by the iCare fundus imaging devices even more extensively as support for clinical decision-making.

Our goal is to continuously develop Revenio’s strong product portfolio by bringing new product innovations and software solutions to the market. We aim to further increase our research and product development investments in 2022, as well as in 2023.

Russia’s recent invasion of Ukraine has shocked the western world, including us at Revenio. This has resulted in a fundamental change in the European security situation. We have stopped all business with Russia and Belarus. Revenio’s operations in Russia have been minor, accounting for less than two per cent of net sales.

During the first quarter of the year our production chain for imaging devices faced challenges due to COVID-19-related employee absences. As a result, orders worth more than half a million euros could not be delivered in the first quarter. Production and deliveries of imaging devices have, however, normalized in April. Although the continuing global component shortages did not impact our deliveries during the first quarter, there remains a risk that component availability and related price volatility may pose challenges later in the year. In addition, regional lockdowns caused by the COVID-19 pandemic in China may affect component availability.

Despite the geopolitical and global economic uncertainties, we start the next quarter confidently. I wish to give special thanks to our entire organization, who have shown extraordinary resilience and operational capability during an exceptional start to the year.”

FINANCIAL REVIEW

INTERIM REPORT JANUARY 1–MARCH 31, 2022, TABLES

Accounting policies applied in the preparation of the interim report
This interim report is not prepared in accordance with IAS 34. Revenio Group adheres to half-year reporting
in accordance with the Securities Markets Act and, for the first three and nine months of the year, publishes
interim reports to present key information on the Group’s financial performance. The financial figures presented in this interim report are unaudited. The financial statement bulletin and the interim report for 1–6/2022 are drawn up in accordance with IAS 34 Interim Financial Reporting.

Consolidated comprehensive income statement (EUR million)

	1-3/2022	1-3/2021	1-12/2021
NET SALES	20.2	16.8	78.8
Other operating income	0.0	0.0	0.9
Materials and services	-5.5	-4.8	-23.0
Employee benefits	-4.8	-3.1	-16.4
Depreciation, amortization, and impairment	-0.8	-0.7	-3.6
Other operating expenses	-3.5	-3.7	-14.5
OPERATING PROFIT	5.6	4.6	22.1
Financial income and expenses (net)	0.3	0.1	0.0
PROFIT BEFORE TAXES	5.8	4.7	22.1
Income taxes	-1.2	-1.0	-4.8
NET PROFIT	4.7	3.7	17.3
Other comprehensive income items	0.7	0.2	0.1
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	5.3	3.9	17.5
Earnings per share, undiluted, EUR	0.176	0.141	0.652
Earnings per share, diluted, EUR	0.176	0.141	0.652

Consolidated balance sheet (EUR million)

	Mar 31, 2022	Mar 31, 2021	Dec 31, 2021
ASSETS
NON-CURRENT ASSETS
Tangible assets	3.0	2.0	2.6
Goodwill	60.3	50.4	59.8
Intangible assets	17.8	16.6	18.2
Right-of-use assets	1.5	0.8	1.7
Other receivables	0.6	0.1	0.2
Deferred tax assets	0.0	0.0	0.0
TOTAL NON-CURRENT ASSETS	83.2	70.0	82.4
CURRENT ASSETS
Inventories	6.0	5.5	6.4
Trade and other receivables	9.7	7.9	9.2
Deferred tax assets	1.7	1.4	1.3
Cash and cash equivalents	22.6	21.9	25.2
TOTAL CURRENT ASSETS	40.0	36.6	42.2
TOTAL ASSETS	123.1	106.6	124.6
SHAREHOLDERS’ EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share capital	5.3	5.3	5.3
Fair value reserve	0.3	0.3	0.3
Reserve for invested unrestricted capital	52.4	52.5	52.6
Other reserves	0.3	0.3	0.3
Retained earnings/loss	26.0	8.2	22.1
Translationdifference	0.6	-0.1	0.0
Own shares held by the company	-2.0	-2.2	-2.1
TOTAL SHAREHOLDERS' EQUITY	82.9	64.3	78.4
LIABILITIES
NON-CURRENT LIABILITIES
Deferred tax liabilities	3.5	3.9	3.6
Financial liabilities	18.2	22.4	0.8
Lease liabilities	0.8	0.3	0.9
TOTAL LONG-TERM LIABILITIES	22.6	26.5	5.3
CURRENT LIABILITIES
Trade and other payables	12.1	11.4	16.9
Provisions	0.5	0.3	0.5
Financial liabilities	4.3	3.6	22.7
Lease liabilities	0.7	0.5	0.8
TOTAL CURRENT LIABILITIES	17.6	15.8	40.9
TOTAL LIABILITIES	40.1	42.4	46.2
TOTAL SHAREHOLDERS' EQUITY
AND TOTAL LIABILITIES	123.1	106.6	124.6

Consolidated statement of changes in equity (EUR million)

		Reserve for
		invested
	Share	unrestricted	Other	Retained	Translation	Own	Total
	capital	equity	Reserves	Earnings	difference	shares	Equity
Balance 1 Jan 2022	5.3	52.6	0.6	22.1	0.0	-2.1	78.4
Dividend distribution	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Disposal and purchase of own shares	0.0	-0.2	0.0	0.0	0.0	0.2	0.0
Other direct entries to retained earnings	0.0	0.0	0.0	-0.8	0.0	0.0	-0.8
Used option rights	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Total comprehensive income	0.0	0.0	0.0	4.7	0.7	0.0	5.3
Balance 31 March 2022	5.3	52.4	0.6	26.0	0.6	-2.0	82.9
		Reserve for
		invested
	Share	unrestricted	Other	Retained	Translation	Own	Total
	capital	equity	Reserves	Earnings	difference	shares	Equity
Balance 1 Jan 2021	5.3	52.5	0.6	14.0	-0.3	-2.3	69.7
Dividend distribution	0.0	0.0	0.0	-8.5	0.0	0.0	-8.5
Disposal and purchase of own shares	0.0	-0.2	0.0	0.0	0.0	0.2	0.0
Other direct entries to retained earnings	0.0	0.0	0.0	-1.1	0.0	0.0	-1.1
Used option rights	0.0	0.2	0.0	0.0	0.0	0.0	0.2
Total comprehensive income	0.0	0.0	0.0	3.7	0.2	0.0	3.9
Balance 31 March 2021	5.3	52.5	0.6	8.2	-0.1	-2.2	64.3

Consolidated cash flow statement (EUR million)

		1-3/2022	1-3/2021	1-12/2021
CASH FLOW FROM OPERATIONS
Profit for the period		4.7	3.7	17.3
Adjustments:
	Depreciation, amortization, and impairment	0.8	0.7	3.6
	Other non-cash items	0.7	-0.7	0.6
	Interest and other financial expenses	0.1	0.1	0.4
	Interest income and other financial income	-0.4	-0.1	-0.4
	Taxes	1.2	1.0	4.8
	Other adjustments	-0.8	0.0	-1.1
Change in working capital:
	Changes in sales and other receivables	-0.5	1.4	0.4
	Changes in current assets	0.4	-0.7	-1.5
	Changes in trade and other payables	-4.2	-1.9	2.2
Change in working capital, total		-4.3	-1.2	1.1
Interest paid		-0.1	-0.1	-0.2
Interest received		0.0	0.0	0.0
Taxes paid		-2.1	-2.7	-4.5
NET CASH FLOW FROM OPERATING ACTIVITIES		-0.2	0.6	21.5
CASH FLOW FROM INVESTING ACTIVITIES
Acquisitions of subsidiaries less cash and cash equivalents at acquisition time		0.0	0.0	-11.3
Purchase of tangible assets		-0.6	-0.2	-1.2
Purchase of intangible assets		-0.6	-0.1	-1.0
Purchase of other investments		-0.4	0.0	0.0
NET CASH FLOW FROM INVESTING ACTIVITIES		-1.6	-0.3	-13.5
CASH FLOW FROM FINANCING ACTIVITIES
Repayments of loans		-1.1	-1.1	-3.2
Dividends paid		0.0	-6.6	-8.5
Share subscription through exercised options		0.0	0.2	0.3
Acquisition of own shares		0.0	0.0	0.0
Payments of lease agreement liabilities		-0.2	-0.2	-0.7
NET CASH FLOW FROM FINANCING ACTIVITIES		-1.3	-7.6	-12.1
Net change in cash and credit accounts		-3.1	-7.2	-4.2
Cash and cash equivalents at beginning of period		25.2	28.9	28.9
Effect of exchange rates		0.4	0.2	0.5
Cash and cash equivalents at end of period		22.6	21.9	25.2

Key consolidated figures, EUR million

	1-3/2022	1-3/2021	1-12/2021
Net sales	20.2	16.8	78.8
Ebitda	6.4	5.3	25.7
Ebitda-%	31.7	31.5	32.7
Operating profit	5.6	4.6	22.1
Operating profit-%	27.5	27.5	28.1
Profit before taxes	5.8	4.7	22.1
Profit before taxes, %	28.8	28.1	28.1
Net result for the period	4.7	3.7	17.3
Net result for the period, %	23.1	22.3	22.0
Gross capital expenditure	1.6	0.2	15.7
Gross capital expenditure-% from net sales	7.8	1.1	19.9
R&D costs	1.6	1.3	6.5
R&D costs-% from net sales	8.0	8.0	8.3
Net gearing-%	0.8	6.5	-1.0
Equity ratio-%	67.4	60.3	63.0
Return on investment-% (ROI)	5.6	5.2	22.4
Return on equity-% (ROE)	5.8	5.6	23.4
Undiluted earnings per share, EUR	0.176	0.141	0.652
Diluted Earnings per share, EUR	0.176	0.141	0.652
Equity per share, EUR	3.11	2.41	2.94
Average no. of employees	184	144	167
Cash flow from operating activities	-0.2	0.6	21.5
Cash flow from investing activities	-1.6	-0.3	-13.5
Net cash used in financing activities	-1.3	-7.6	-12.1
Total cash flow	-3.1	-7.2	-4.2

Alternative growth indicators used in financial reporting

Revenio has adopted the guidelines of the European Securities and Market Authority (ESMA) on Alternative Performance Measures. In addition to the IFRS-based key figures, the company will publish certain other generally used key figures that may, as a rule, be derived from the income statement and balance sheet. The calculation of these figures is presented below. According to the company’s view, these key figures supplement the income statement and balance sheet, providing a better picture of the company’s financial performance and position.

Revenio Group’s net sales are strongly affected by fluctuations in the exchange rate between the euro and the US dollar. As an alternative growth indicator, we also present our net sales with the exchange rate effect eliminated.

Alternative growth indicator (EUR thousand)	1-3/2022
Reported net sales	20,193
Effect of exchange rates on net sales	-860
Net sales adjusted by the effect of exchange rates	19,333
Growth in net sales, adjusted by the effect of exchange rates	17.1 %
Reported net sales growth	20.5 %
Difference, % points	-3.4 %

Alternative profitability indicator EBITDA (EUR thousand)
EBITDA = Operating profit + depreciation + impairment

As an alternative growth indicator, the company also presents profitability as an operating margin (EBITDA) key figure.

Alternative profitability indicator (EBITDA) (EUR thousand)	1-3/2022	1-3/2021	1-12/2021
Operating profit, EBIT	5,561	4,613	22,103
Depreciation, amortization, and impairment	831	670	3,620
EBITDA	6,392	5,283	25,722

Operating profit adjusted by non-recurring costs (EUR thousand)	1-3/2022	1-3/2021	1-12/2021
Operating profit, EBIT	5,561	4,613	22,103
Cutica related impaiment	0	0	628
Non-recurring costs of the acquisition	0	634	678
Adjusted operating profit, EBIT	5,561	5,247	23,409

EBITDA adjusted by non-recurring acquisition costs (EUR thousand)	1-3/2022	1-3/2021	1-12/2021
EBITDA	6,392	5,283	25,722
Non-recurring costs of the acquisition	0	634	678
Adjusted operating profit, EBITDA	6,392	5,917	26,401

Formulas

EBITDA	=		EBITDA = Operating profit + amortization + impairment
Gross margin	=		Sales revenue – variable costs
Earnings per share	=		Net profit for the period (attributable to the parent company’s shareholders) Average number of shares during the period – own shares purchased
Profit before taxes	=		Operating profit + financial income – financial expenses
Equity ratio, %	=	100 x	Shareholders’ equity on the balance sheet + non-controlling interest Balance sheet total – advance payments received
Net gearing, %	=	100 x	Interest-bearing debt – cash and cash equivalents Total equity
Return on equity (ROE), %	=	100 x	Profit for the period Shareholders’ equity + non-controlling interest
Return on investment (ROI), %	=	100 x	Profit before taxes + interest and other financial expenses Balance sheet total – non-interest-bearing debt
Equity per share	=		Equity attributable to shareholders Number of shares at the end of the period

General statement
This report contains certain statements that are estimates based on the management’s best knowledge at the time they were made. For this reason, they involve a certain amount of inherent risk and uncertainty. The estimates may change in the event of significant changes in the general economic conditions.

Revenio Group Corporation
Board of Directors

Audiocast and conference call
President & CEO Jouni Toijala and CFO Robin Pulkkinen will present the Q1/2022 results in an audiocast and a conference call for analysts and investors at 3.00 p.m. (EEST) on the same day.

The audiocast can be followed at https://revenio.videosync.fi/results-q1-2022.

Conference call dial in numbers:
Finland: [phone]
Sweden: [phone]
United Kingdom: [phone]
United States: [phone]

PIN: 77956089#

For further information, please contact
Jouni Toijala, President & CEO, tel. [phone]
[e-mail]

Robin Pulkkinen, CFO, tel. [phone]
[e-mail]

Distribution
Nasdaq Helsinki Oy
Financial Supervisory Authority (FIN-FSA)
Principal media
www.revenio.fi

Revenio Group in brief
Revenio is a leading company in the global market for ophthalmological devices and software solutions. Revenio’s ophthalmic diagnostic solutions include intraocular pressure (IOP) measurement devices (tonometers), fundus imaging devices, and perimeters as well as clinical software under the iCare brand. iCare is a trusted partner in ophthalmic diagnostics, offering physicians fast, easy-to-use, and reliable tools for the diagnosis of glaucoma, diabetic retinopathy, and macular degeneration (AMD). iCare Solutions provide digital clinical tools that drive greater efficiency and enhance quality in eye care.

In 2021, the Group’s net sales totaled EUR 78.8 million, with an operating profit of EUR 22.1 million. Revenio Group Corporation is listed on Nasdaq Helsinki with the trading code REG1V.

Attachments

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Revenio Group Corporation Interim Report Q1 2022

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