Revenio Oyj : Half-Year Financial Report

Revenio Group Corporation: Half-year financial report 1 January-30 June 2022

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

Q2/2022: A very strong quarter driven by all key markets and products

April-June 2022

• Net sales totaled EUR 24.4 (18.9) million, showing an increase of 29.3%
• The currency-adjusted growth of net sales in April-June was 18.1%
• Operating profit was EUR 7.1 (4.4) million, or 29.2% of net sales, up by 60.6%
• EBITDA was EUR 8.0 (5.2) million, up 54.5%
• Cash flow from operations totaled EUR 4.6 (4.0) million
• Undiluted earnings per share came to EUR 0.203 (0.130)

January-June 2022

• Net sales totaled EUR 44.6 (35.6) million, showing an increase of 25.1%
• The currency-adjusted growth of net sales in January-June was 17.6%
• Sales grew in all of our key markets in double digits
• Operating profit was EUR 12.7 (9.0) million, or 28.4% of net sales, up by 40.2%.
• The EUR 0.7 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 30.4%.
• EBITDA was EUR 14.4 (10.4) million, up 37.5%.
• Cash flow from operations totaled EUR 4.4 (4.7) million
• Undiluted earnings per share came to EUR 0.379 (0.271)
• On April 8, 2022, the Annual General Meeting decided to distribute a dividend of EUR 0.34 (0.32) per share

Key consolidated figures, EUR million

	4-6/20224-6/2021	Change-%1-6/20221-6/2021	Change-%
Net sales	24.4	18.9	29.3	44.6	35.6	25.1
Gross margin	17.4	13.0	33.5	32.1	25.0	28.0
Gross margin - %	71.3	69.1	2.3	71.9	70.3	1.6
EBITDA	8.0	5.2	54.5	14.4	10.4	37.5
EBITDA-%	32.7	27.4	5.3	32.2	29.3	2.9
Operating profit, EBIT	7.1	4.4	60.6	12.7	9.0	40.2
Operating profit-%, EBIT	29.2	23.5	5.7	28.4	25.4	3.1
Return on investment-%,	7.0	4.7	2.3	12.7	9.7	3.0
ROI
Return on equity-%, ROE	6.8	5.0	1.8	12.8	10.5	2.3

Undiluted earnings per	0.203	0.130	0.379	0.271
share
	30.6.2022	30.6.2021 Change, %-point
Equity ratio-%	66.2	61.9	4.3
Gearing-%	7.0	20.7	-13.7

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 half year of 2022:

"Despite the global uncertainty, the first half of 2022 was very strong for us. Sales grew by double digits in all our key markets, resulting in 25.1% growth in net sales and 40.2 % in operating profit. Exchange rates supported our favorable development throughout the first half of the year. Our January-June revenue growth adjusted for exchange rate effects reached 17.6%.

We have achieved continued growth from one quarter to the next - while increasing our market share - in both intraocular pressure measurement devices and retinal imaging devices. The development of the sales of intraocular pressure measurement devices was very strong especially in the United States, key European countries, and Latin America. In the retinal imaging devices segment, demand was particularly strong for the iCare DRSplus and iCare Eidon UWFL. The resumption of conferences, which are the most important sales events in our industry, has boosted the demand for our products. We believe that the growth in our market share is driven by our long-term efforts with product portfolio, customer experience, and delivery capability.

As part of iCare Solutions, we launched iCare ILLUME, an AI-assisted software solution for the screening of diabetic retinopathy. The prevalence of diabetes is increasing at a high rate globally, and the world needs innovative solutions for increasing screening coverage. At the same time, the solution allows ophthalmologists to focus on patients with actual risk factors for eye diseases. The iCare ILLUME solution combines images taken with the iCare DRSplus fundus imaging system with AI technology. iCare ILLUME instantly detects signs of vision-threatening diabetic retinopathy with the help of AI. Images taken with the iCare DRSplus fundus imaging system are automatically transferred to the iCare ILLUME screening solution hosted on a cloud service, and the report is instantly available. This allows the utilization of the high-quality images generated by the iCare DRSplus fundus imaging system even more extensively to support clinical decision-making. In the future, the iCare ILLUME solution can be used for the screening of other eye diseases as well.

Based on the current outlook, it is likely that the uncertainties related to the slowdown in economic development and the geopolitical environment will continue towards the end of the year. The direct impacts of the war in Ukraine on our business operations have been limited. We stopped all business in

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Russia and Belarus in the first quarter. The global challenges associated with the availability of electronic components continued throughout the first half of the year, which has not so far had an impact on our delivery capability. We estimate that the availability challenges will continue at least for the rest of the year, which we have aimed to prepare for with proactive measures. We increased our prices at the beginning of May as a response to the increasing costs.

I am proud of the commitment and performance of our global team in the challenging general market situation. We will continue to focus on building growth and strengthening our position in eye care solutions. As we enter the second half of the year, we are keeping a close eye on the global economy and the geopolitical environment."

The effects of the war in Ukraine on Revenio

The security situation in Europe has changed drastically since Russia invasion of Ukraine. Revenio stopped all its business in Russia and Belarus in the first quarter of the year. Revenio's sales in Russia have been limited prior to the war, accounting for less than two per cent of net sales.

Strategy

The cornerstones of Revenio's strategy are:

1. Focus fully on the eye care market
2. Improve the quality of clinical diagnostics with targeted product innovations
3. Transform clinical care pathways with eye care focused software solutions
4. Continue to develop stronger distribution and build on iCare brand awareness and client experience
5. Continue strong profitable growth

Financial review

Net sales, profitability and profit

April-June 2022

Revenio Group's net sales April 1-June 30, 2022 totaled EUR 24.4 (18.9) million. Net sales increased by 29.3%. The currency-adjusted growth of net sales in April-June was 18.1%. EBITDA was EUR 8.0 (5.2) million, or 32.7% of net sales, up by 54.5%.

Profit before taxes was EUR 7.0 (4.3) million, up 61.9% year-on-year. The operating profit in April-June was EUR 7.1 (4.4) million, showing a growth of 60.6%.

Undiluted earnings per share came to EUR 0.203 (0.130). Equity per share came to EUR 2.98 (2.54).

January-June 2022

Revenio Group's net sales 1 January-30 June, 2022 totaled EUR 44.6 (35.6) million. Net sales increased by 25.1%. The currency-adjusted growth of net sales in January-June was 17.6%. EBITDA was EUR 14.4 (10.4)

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million, or 32.2% of net sales, up by 37.5%. The EUR 0.7 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 30.4%.

Profit before taxes was EUR 12.9 (9.0) million, up 42.1% year-on-year.

The Group's operating profit in January-June was EUR 12.7 (9.0) million, up 40.2%.

Undiluted earnings per share came to EUR 0.379 (0.271) Equity per share came to EUR 2.98 (2.54).

Balance sheet, financial position, and cash flow

The Group's balance sheet total on June 30, 2022 totaled EUR 120.1 (109.2) million. The value of goodwill on the balance sheet on June 30, 2022 totaled EUR 60.1 (59.7) million.

The Group's equity was EUR 79.4 (67.6) million. The Group's interest bearing debt at the end of the review period totaled EUR 22.5 (26.1) million, and net gearing was 7.0 (20.7)%. The Group's equity ratio was 66.2 (61.9)%. The Group's liquid capital at the end of the review period on June 30, 2022 totaled EUR 17.0 (12.1) million. Cash flow from operations totaled EUR 4.4 (4.7) million.

Administration

Personnel and management

On June 30, 2022 the members of the Leadership Team of Revenio Group are Revenio Group Corporation's President & CEO Jouni Toijala (Chair), Vice President, Devices Giuliano Barbaro, Vice President, Quality Heli Huopaniemi, Vice President, Operations Ari Isomäki, Vice President, Sales and Marketing Tomi Karvo, CFO Robin Pulkkinen, Vice President, Research Mika Salkola, Vice President, Eye Care Solutions Kate Taylor and Vice President, People & Culture Hanna Vuornos.

Average number of personnel during the review period

1-6/20221-6/20211-12/2021

Revenio Group

188

155

167

Personnel at the end of the review period on June 30, 2022, was 194 (167), up by 27. The growth mainly results from new recruitments. Wages, salaries, and other remuneration paid in January-June 2022 amounted to EUR 8.3 (6.4) million.

Board of Directors

The Annual General Meeting 2022 decided to elect Arne Boye Nielsen, Riad Sherif, Ann-Christine Sundell, Pekka Tammela, and Bill Östman as Board members. In the board meeting held after the AGM, the Board

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of Directors elected Arne Boye Nielsen as Chair of the Board. As announced on April 28, 2022, the Board elected Bill Östman as Vice Chairman of the Board.

Audit Committee

At its organization meeting, held after the Annual General Meeting 2022, the Board elected the members of the Audit Committee amongst the Board members. Pekka Tammela (Chair of the Audit Committee), Arne Boye Nielsen, and Ann-Christine Sundell were elected to the Committee.

The duties of the Audit Committee are described in more detail in the 2021 Report by the Board of Directors, Corporate Governance Statement, and on the company's website at https://www.reveniogroup.fi/en/investors/corporate_governance/board_of_directors

Nomination and Remuneration Committee

At its organization meeting, held after the Annual General Meeting 2022, the Board elected the members of the Nomination and Remuneration Committee amongst the Board members. Ann-Christine Sundell (Chair of the Committee), Riad Sherif, and Bill Östman were elected.

The duties of the Nomination and Remuneration Committee are described in more detail in the 2021 Report by the Board of Directors, Corporate Governance Statement 2021, and on the company's website at https://www.reveniogroup.fi/en/investors/corporate_governance/board_of_directors

Auditor

Deloitte Oy, Authorized Public Accountants, were re-appointed as the company's auditors, with Mikko Lahtinen, Authorized Public Accountant, as the principal auditor. The Auditor's Fee is paid upon the invoice approved by the company.

Shares, share capital, and management and employee holdings

On June 30, 2022, the Revenio Group Corporation's fully paid-up share capital registered with the Trade Register was EUR 5,314,918.72 and the number of shares totaled 26,681,116.

The company has one class of share, and all shares confer the same voting rights and an equal right to dividends and the company's funds. On June 30, 2022, the President & CEO, members of the Board of Directors and their related parties held 0.18% of the company's shares, or 46,722 shares.

During the review period, the company did not buy its own shares. At the end of the review period, the company held 102,321 of its own shares, which represent 0.38% of the total number of all shares.

In late 2015, the employees of Revenio Group established a personnel fund, into which any bonuses earned by employees working in Finland on the basis of incentive schemes can be paid. The arrangement is widely used by the personnel.

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