ChemoMetec

Interim / Quarterly Report • Feb 5, 2021

Interim report

1 July ‐ 31 December 2020

ChemoMetec A/S | Gydevang 43 | DK‐3450 Allerød | CVR no. 19 82 81 31

Good first half year with strong revenue growth and improved EBITDA margin

ChemoMetec generated revenue of DKK 133.0 million in H1 2020/21, a 28% increase on the year‐earlier period. EBITDA grew by 53% to DKK 67.1 million, and the EBITDA margin was improved to 51%.

In the first half year, ChemoMetec was still affected by COVID‐19, including the increasing spread of the virus towards the end of the period and the introduction of extensive restrictions in many European and Asian markets as well as in the USA. In addition to COVID‐19 and the resulting consequences, our markets and customers were also marked by uncertainty due to the US election and Brexit in the first half year, just like the falling USD exchange rate had a negative impact on both revenue and earnings.

In spite of this, ChemoMetec generated strong growth and progress in all important markets – a growth driven by increasing volumes, including an increasing number of instruments, consumables and not least service contracts sold.

"In light of the very special situation in all our markets due to COVID‐19, we are very satisfied with the results achieved in the first half year. We have made extensive efforts to adapt to the new reality across the organisation, and we man‐ aged to maintain all significant functions and serve our customers online. This meant that we maintained strong growth in all our important markets – among other things, due to good performance in sales of our latest cell counter, the NucleoCounter NC‐202 (NC‐202), as well as service contracts. However, sending home many employees within product development and difficulties in conducting external tests delayed the development of our coming cell counter, the XcytoMatic, and the expected launch is now postponed to the first half year of 2021/22. In the meantime, we are confi‐ dent that our existing products will ensure sustained strong growth", says Steen Søndergaard, CEO.

Highlights

• Revenue amounted to DKK 133.0 million in H1 2020/21, a 28% increase on the year‐earlier period.
• Growth in all important markets especially the European market developed favourably and recorded growth of 43%. Growth in the USA/Canada was 20% (25% measured in USD), while the other markets grew by 28%, mainly driven by China.
• Sales of analytical instruments were up by 19% in H1, while sales of consumables grew by 20%.
• Revenue from service contracts increased from DKK 2.3 million to DKK 12.4 million. Overall, ChemoMetec has approximately 700 active service contracts, approximately 230 of which were sold in H1.
• Revenue in ChemoMetec's core business area, LCP, increased by 32% in H1 and accounted for 90% of the total revenue.
• EBITDA increased to DKK 67.1 million in H1, up from DKK 43.8 million in the year‐earlier period, corresponding to an increase of 53%. At the same time, the EBITDA margin was improved from 42% to 51%.
• Sales of the latest NC‐202 analytical instrument, which was launched in the 2019/20 financial year, are devel‐ oping according to plan and contributed significantly to the revenue growth. ChemoMetec sold 85 NC‐202 in‐ struments in the first half year.

• ChemoMetec now expectsto complete the development of the new XcytoMatic instrument during the first half year of 2021/22. The development of the XcytoMatic has been delayed due to COVID‐19‐related restrictions.
• The most recent guidance released on 14 December 2020 is maintained.

Steen Søndergaard CEO

About ChemoMetec A/S

ChemoMetec develops, manufactures and markets analytical instruments for cell counting and a wide range of other measurements. ChemoMetec's analytical instruments are marketed to the pharmaceutical industry, biotech and agri‐ culture worldwide. ChemoMetec's customers comprise some of the world's leading pharmaceutical companies, includ‐ ing Novartis, Novo Nordisk, H. Lundbeck, Merck, AstraZeneca and Johnson‐Johnson.

ChemoMetec was founded in 1997 and is listed on the Nasdaq Copenhagen stock exchange.

For more information, go to www.chemometec.com.

Financial highlights

DKK 1,000	H1 2020/21	H1 2019/20	2019/20
Income statement
Revenue		132,981 103,599 214,101
Operating profit before amortisation and depreciation (EBITDA)		67,135 43,752 92,610
Operating profit (EBIT)		57,634 36,433 77,470
Net financials	‐4,284		‐488 1,547 ‐
Net profit for the period		42,278 27,454 59,163
Comprehensive income for the period		42,245 27,457 59,166
Balance sheet
Assets		288,823 442,895 263,116
Net working capital		53,539 43,235 35,108
Invested capital		127,911 111,451 118,357
Equity		218,892 397,274 202,751
Net interest‐bearing debt	‐106,269		‐288,311 94,650 ‐
Cash flows
‐ cash flow from operating activities		55,596 24,951 72,016
‐ cash flow from investing activities	‐14,216		‐12,825 26,605 ‐
‐ cash flow from financing activities	‐26,613		180,692 46,260 ‐
Key figures and ratios
Profit margin (EBIT margin) (%)		43.3 35.2 36.2
EBITDA margin (%)		50.5 42.2 43.3
Tax rate (%)		20.8 23.6 22.1
Return on invested capital (ROIC), (%)		46.8 34.4 70.9
Revenue/Invested capital		1.0 0.9 1.8
Net interest‐bearing debt/EBITDA	‐1.6		‐6.6 1.0 ‐
Financial gearing	‐0.5		‐0.7 0.5 ‐
Return on equity (%)		20.0 9.6 31.5
Average number of employees (FTE)		121 97 102
Share related ratios
Market price pershare (DKK)		578 205 315
Earnings pershare (DKK)		2.43 1.68 3.51
Equity value pershare (DKK)		12.6 22.8 11.7
Dividend pershare (DKK)	1.50 ‐		20.50

Financial ratios used in interim reports are calculated for the relevant period, which means that conversion to a full‐ year basis has not been made.

Key figures and financial ratios have been defined and calculated in accordance with "Recommendations and Financial Ratios" issued by the Danish Finance Society.

Management's review

COVID‐19 situation

COVID‐19 affects ChemoMetec in various ways. Due to the risk of infection and the restrictions, ChemoMetec has adapted its sales and marketing efforts to the new market conditions and at the same time, carrying out service has been challenged for periods of time. High priority is given to protecting the employees from the risk of infection and at the same time maintaining a continuous production of instruments and consumables – high reliability of delivery is crucial to the customers. On the product development side, the development work related to the new cell counter, the XcytoMatic, was affected by delays as a result of sending home employees and difficulties in conducting external tests.

In the first half of 2020/21, revenue performance was satisfactory despite COVID‐19. However, it is not possible to determine the effect of COVID‐19 on revenue as the pandemic has both positive effectssuch as increased sales to some customers, and negative effects such as caution among other customers. It is a fact, though, that the market conditions under COVID‐19 remain marked by general uncertainty.

The sales organisation has implemented the use of digital solutions successfully and efficiently. However, travel and quarantine restrictions as well as general restrictions related to arranging meetings complicate sales to new customers as well as the possibilities of carrying out service visits. As a result, additional resources were allocated to digitalising sales and marketing as well as the planning and performance of service inspections. Overall, ChemoMetec has gener‐ ated substantial cost savings due to very low costs of travel activity.

ChemoMetec handles the production of all instruments. A large number of sub‐suppliers are used for the manufacture of for instance circuit boards, but controlling, assembly, alignment and quality control are carried out at the company's facilities in Allerød. Within consumables, the production of cassettes is most important. The plastic parts used in the production of cassettes are supplied by a Danish injection moulding business, whereas the assembly of cassettes takes place at the company's facilities in Allerød. ChemoMetec has introduced a number of measures to limit the risk of infection among its employees, while at the same time maintaining continuous production. The measures comprise several initiatives, such as sending home employees, introduction of additional work shifts, and increasing raw material stocks when deemed appropriate.

Sales and marketing activities and sales trends in the individual geographical seg‐ ments and business areas

Revenue growth in the first half year was driven by higher volume and not least sales of the NC‐202 and service con‐ tracts. However, the growth rate was adversely impacted by the falling USD rate.

In the first half year, ChemoMetec continued expanding and strengthening the sales organisation and completed a restructuring of the European sales set‐up in the first quarter as well. The average number of full‐time employees in sales and marketing was increased by around 11 in the period, and a new sales office was established in San Diego, California. ChemoMetec's US head office will remain located on Long Island, New York.

Sales of analytical instruments grew by 19% to DKK 64.4 million in H1, and a total of 489 instruments were sold, up from 366 in the year‐earlier period.

Launched in the 2019/20 financial year, the NC‐202 contributed to the positive performance by 85 instruments sold, up from 1 instrument in the first half of 2019/20 and 47 instruments in the 2019/20 full year.

In the first half year, the overall average price of an instrument was approximately 10% lower than in the year‐earlier period. Several factors affect the average price of an instrument. Foreign exchange movements are an important factor, and particularly developments in the USD exchange rate had a significant effect as around 50% of the company's reve‐ nue is settled in USD. Another factor affecting the average price of an instrument is the sales of new service contracts

as ChemoMetec sometimes offers customers a discount if they also buy a service contract for the instrument. In addi‐ tion, the product mix will obviously affect the average price of instruments as the prices of the various types of instru‐ ments vary greatly. Lastly, the average prices are impacted by systematic discounts given to distributors and a few large customers.

Sales of consumables, comprising disposable cassettes, glass slides, test kits, reagents and solutions, grew by 20% to DKK 50.4 million. In the first half year, 2.8 million disposable cassettes were sold, up from 2.3 million in the year‐earlier period.

Sales of service contracts in the first half year were highly satisfactory. Around 230 new service contracts were sold, thus ChemoMetec now has approximately 700 active service contracts. At DKK 12.4 million, sales of service contracts accounted for 9% of total revenue. Early experience from the annual renewal of service contracts shows a 95% renewal rate. Service contracts are only sold to customers in the LCP market and for the NC‐200 and NC‐202 instruments, and to a lesser extent the NC‐3000.

Development in geographical segments

Sales are organised in three regions:

• ‐ USA/Canada
• ‐ Europe
• ‐ Other (rest of the world)

Revenue by geographical segment:

	H1 2020/21		H1 2019/20
Revenue	DKKm	Growth (%)	DKKm	Growth (%)
USA/Canada		66.5 20	55.6	34
Europe		48.2 43	33.8	19
Other (ROW)		18.3 28	14.2	15
Total revenue		133.0 28	103.6	26

USA/Canada

Revenue in the USA/Canada amounted to DKK 66.5 million, a 20% increase compared with DKK 55.6 million and 34% in the year‐earlier period. Revenue in the USA/Canada accounted for 50% of total revenue globally, against 54% in the year‐earlier period. Growth in local currency (USD) was 25%. The USD exchange rate (USD/DKK) fell approximately 9% during the period.

ChemoMetec sold more instruments in the first half year, but revenue from sales of instruments, DKK 29.2 million, was slightly lowerrelative to the same period of last year asthe average price of instruments declined,see the above section.

Sales of consumables were up by 15% to DKK 25.4 million, driven by an increase in the number of cassettes and test kits sold.

Sales of service contracts now account for 13% of revenue in the USA/Canada, corresponding to DKK 8.5 million against DKK 2.0 million in the year‐earlier period.

Revenue in the LCP market, the main business area, grew by 19%.

The number of employees in the US subsidiary rose from 20 to 26 during the first half year.

Europe

Revenue in Europe amounted to DKK 48.2 million, a 43% increase compared with DKK 33.8 million and 19% in the year‐ earlier period. Revenue in Europe accounted for 36% of total revenue, against 33% in the year‐earlier period.

Revenue from sales of instruments grew by 50% to DKK 24.3 million, primarily driven by a significant increase in sales of the NC‐202.

Sales of consumables increased by 27% to DKK 18.0 million, also driven by a higher volume.

Sales of service contracts accounted for 8% of revenue, corresponding to DKK 3.8 million against DKK 0.3 million in the year‐earlier period.

The major geographical markets in Europe are the UK, France, Germany, Denmark and the Netherlands. There was a particularly positive trend in sales to France with revenue of DKK 7.1 million, or a 63% increase. Likewise, sales to the UK were satisfactory with a 47% increase, corresponding to DKK 9.9 million.

The improvement in Europe was especially driven by the LCP market, where revenue was up by 55%.

Other countries

Revenue in the rest of the world ("Other countries") grew by 28% from DKK 14.2 million to DKK 18.3 million. Revenue in the other markets accounted for 14% of total revenue, which was more or less unchanged relative to the year‐earlier period.

China is the largest single market in "Other countries", followed by Japan. Revenue in the Chinese market was up by 117% to DKK 9.7 million in H1. In Japan, revenue grew by 33% to DKK 3.7 million. Revenue performance in the other individual markets varies considerably, but overall a decline was seen in these countries.

Sales in "Other countries" are mainly settled in Euro and therefore not affected by the falling USD exchange rate to the same extent as the USA/Canada.

Development in the individual business areas

Revenue is divided into the following business areas:

• ‐ Life Science Research, Cell‐based Therapy and Pharmaceutical Process and Quality Control (LCP market)
• ‐ Production and quality control of animal semen
• ‐ Production control of beer and quality control of milk

The LCP business area accounts for 90% of total revenue, semen analysis for 8%, while the other business areas, beer and milk together account for 2%.

Life Science Research, Cell‐based Therapy and Pharmaceutical Process and Quality Control (LCP market)

The LCP market is ChemoMetec's most important business area, accounting for more than 90% of total revenue. Rela‐ tive to the year‐earlier period, revenue in the LCP market grew by 32% equivalent to DKK 119.8 million. The improve‐ ment was composed of an increase in sales of instruments and sales of consumables of 18% and 24%, respectively, while sales of service contracts grew by 450% to DKK 12.4 million, but from a low starting point.

Revenue in the LCP market by geographical segment:

	H1 2020/21		H1 2019/20
Revenue	DKKm	Growth (%)	DKKm	Growth (%)
USA/Canada		59.8 19	50.1	37
Europe		43.9 55	28.4	17
Other (ROW)		16.1 31	12.3	17
LCP market		119.8 32	90.8	27

Asin previous years,salesin the LCP market are primarily driven by substantial market growth within cell‐based therapy – an area in which ChemoMetec still holds a very favourable position relative to competing players.

The NC‐200 and the NC‐202 are the main products in the LCP market. The latter was launched in September 2019. Thus, NC‐202 is ChemoMetec's latest instrument based on the Xcyto technology. Reduced time of analysis and improved counting algorithms are some of the unique features of the NC‐202. The NC‐202 is sold to both new and existing cus‐ tomers. In the first half year, ChemoMetec sold 85 instruments, of which 30 instruments were sold in the first quarter and 55 in the second quarter. By way of comparison, 47 instruments were sold during the entire 2019/20 financial year.

Sales of the NC‐200 increased by 24 units in the first half year. The NC‐200 will still be marketed and sold for a number of years, both for the good of existing customers and to be able to offer new customers a lower price alternative to the NC‐202.

Overall, revenue from sales of the NC‐200 and the NC‐202 rose by 23% in the half year, corresponding to DKK 48.0 million. Revenue related to the NC‐200 and the NC‐202, including consumables and service contracts, amounted to DKK 93.0 million.

Towards the end of the 2018/19 financial year, ChemoMetec introduced service contracts, comprising support, ex‐ tended guarantee and on‐site validation of the instrument. The service contracts are primarily directed at the NC‐200 and the NC‐202 and to a lesser extent other instruments within the LCP market. The service contracts have a duration of one year, and experience so far shows that around 95% of the service contracts are renewed before they expire. Service contracts are offered both in connection with new sales of NC‐200 and NC‐202 instruments and to existing customers.

Overview – service contracts:

	H1 2020/21	H1 2019/20	2018/19
Sold service contracts (units)	231	463	31
Active service contracts (units)	702	494	31

Invoiced sales of service contracts are recognised in revenue on an ongoing basis upon delivery of the service. At DKK 12.4 million in H1, revenue from service contracts accounted for 9% of total revenue.

Production and quality control of animal semen

Sales of cell counting products for semen analysis grew by 13% to DKK 10.2 million in H1. Semen analysis accounts for 8% of total revenue. The SP‐100 instrument belonging to the NC‐100 product family was launched in the 2003/04 finan‐ cial year. Despite its age, the instrument still holds a leading position within analysis of animal semen.

Production control of beer and quality control of milk

Production control of beer and quality control of milk are two small business areas, which combined account for around 2% of revenue. Revenue in these two business areas has been declining for a number of years and they are not consid‐ ered strategically important to ChemoMetec.

Product development

In the past half year, ChemoMetec's product development primarily focused on the XcytoMatic as well as product up‐ grades and new applications for existing instruments. New applications comprise, among other things, two NC‐202 assays for counting yeast and microcarrier cultures. Counting of yeast cultures is relevant within several business areas. Moreover,substantial resources were spent on developing a new software platform intended for both existing and new products to support future growth.

XcytoMatic

The XcytoMatic is a fully automatic cell counter based on the Xcyto technology and use of a test carousel and a cuvette for flow‐through measurements. The instrument is targeted at the cell counting market, primarily within pharmaceuti‐ cal process development and production. Compared with competing products, the XcytoMatic will possess a range of unique sales parameters, and one of the most important will be a significantly higher analysis capacity.

Since the COVID‐19 outbreak in March 2020, the development of the XcytoMatic has been affected by reduced activity in the R&D department due to sending home several employees. Most recently, many employees of the R&D depart‐ ment have been temporarily sent home since early December 2020. Naturally, this has complicated the project work as well as the conduct of field tests, where functional models and prototypes are tested externally in collaboration with potential customers. The difficulties involved in conducting external tests and interacting with potential customers are expected to continue in the period ahead and cause further delays in the original project plans. ChemoMetec now expects to complete the development of the XcytoMatic during the first half year of 2021/22.

Development partnerships

CareDNA

The CareDNA project continued in the first half year where ChemoMetec regularly paid costs and received a share of the grant from Innovation Fund Denmark.

The purpose of the project is to develop new technologies for diagnosing pancreatic cancer. Pancreatic cancer is one of the deadliest cancers with only an 8% survival rate five years after diagnosis. The project is a collaboration between the University of Copenhagen, Herlev and Gentofte Hospital, Roche Sequencing Solutions and ChemoMetec. The project is headed by Birgitte Regenberg, Associate Professor at the Department of Biology at the University of Copenhagen.

ChemoMetec is responsible for developing methods to detect and quantify circular DNA markers in cells and tissue.

Circular Vision

The EU has granted DKK 30 million to the Circular Vision project that will develop a technology platform that will allow extrachromosomal circular DNA (eccDNA) to be used as a tool for early diagnosis, sensitive monitoring and ultimately cure diseases related to eccDNA. The project forms part of the Horizon 2020 programme and is a Future and Emerging Technologies Open (FET Open), supporting the development of breakthrough technology that may potentially have a huge impact on society. FET Open is a very prestigious programme, and only around 7% of the applicants receive a grant.

Circular Vision is a collaboration between the University of Copenhagen, Aarhus University, Herlev and Gentofte Hospi‐ tal and various universities and research units in Spain, Italy and Switzerland as well as ChemoMetec. The project is expected to start on 1 April 2021 and end on 31 March 2024.

Financial review

Revenue and gross profit

ChemoMetec generated revenue of DKK 133.0 million in H1 2020/21, against DKK 103.4 million in the year‐earlier pe‐ riod. Gross profit amounted to DKK 118.0 million, corresponding to a gross margin of 89%. The gross margin is on level with the year before.

Operating profit before amortisation and depreciation (EBITDA)

ChemoMetec reported EBITDA of DKK 67.1 million for the period, representing a DKK 23.4 million year‐on‐year im‐ provement. The improvement in EBITDA, corresponding to 53%, was due to revenue growth combined with a signifi‐ cantly lower increase in costs. The EBITDA margin was 50.5%, against 42.2% in the same period of last year.

Other external costs amounted to DKK 10.4 million against DKK 13.0 million in the year‐earlier period and comprise costs for sales‐promoting activities, premises, IT, administration, etc. The lower costs in the first half year of 2020/21 are a combination of generally higher IT and administration costs as well as very low travel expenses.

Staff costs amounted to DKK 40.4 million, a 9% increase. In the first half year of 2020/21, staff costs also comprised severance payment of DKK 4 million to the former CEO. Adjusted for the severance payment, the increase in staff costs was 20%. In the period, the expansion and strengthening of the organisation continued within sales, production and staff functions, and the average number of full‐time employees increased to 121 against 97 in the first half year of 2019/20.

EBIT came to DKK 57.6 million in the period, against DKK 36.4 million in the year‐earlier period, and the EBIT margin was 43.3% against 35.2% the year before.

Profit before tax for the period was DKK 53.4 million and was affected by net financial expenses of DKK (4.3) million, DKK (3.9) million of which relates to negative exchange rate adjustments primarily due to the low USD exchange rate. Tax on the profit for the year amounted to DKK 11.1 million, equivalent to an effective tax rate of just over 21%.

Comprehensive income for the first half year of 2020/21 was DKK 42.2 million, an increase of DKK 14.8 million in the period.

Equity and balance sheet

At the balance sheet date, total assets amounted to DKK 288.8 million, of which equity amounted to DKK 218.9 million, corresponding to an equity ratio of 76% (2019/20: 77%). ChemoMetec paid out dividend of DKK 26.1 million in the first half year, corresponding to DKK 1.50 per share.

The balance sheet includes intangible assets of DKK 54.3 million (2019/20: DKK 51.4 million), which primarily consist of development projects in progress and completed as well as patents. Investments herein during the period amounted to DKK 6.1 million (2019/20: DKK 6.2 million).

At the balance sheet date, funds tied up in inventories and trade receivables amounted to DKK 72.0 million against DKK 60.6 million at the end of the 2019/20 financial year. The increase was mainly due to a rise in trade receivables as a result of the higher level of activity.

Cash flows and cash flow performance

Cash flowsfrom operating activities were an inflow of DKK 55.6 million in the period, compared to an inflow of DKK 25.0 million in the year‐earlier period. Investing activities adversely impacted liquidity by DKK 14.2 million against DKK 12.8 million in the year‐earlier period and comprise investments in development projects, refurbishment of buildings as well as production and operating equipment. Moreover, ChemoMetec paid out dividend of DKK 26.1 million in the period.

IPR and licence agreements

At the end of the first half year, ChemoMetec had a total of 16 patent families, of which 67 patents had been taken out in selected countries, including 14 in the USA. ChemoMetec has invested substantial amounts and resources in patent protection of its technologies and expects to continue this strategy in future.

At the end of the first half year, ChemoMetec had not been informed of any opposition proceedings against the com‐ pany's patents.

Risk factors

ChemoMetec's business involves a range of commercial and financial risks that may have an adverse impact on the company's future growth, activities, financial position and results of operations. ChemoMetec consistently seeks to identify these risks and, to the greatest extent possible, to counter and mitigate risks that the company can influence through its own actions. There have been no changes to the risk factors compared to the 2019/20 annual report.

For a more detailed description of the company's risk factors, see the relevant section in the 2019/20 annual report.

Guidance for 2020/21

On 14 December 2020, we raised our revenue and EBITDA guidance to revenue in the DKK 250‐260 million range, up from DKK 240‐250 million, and EBITDA in the DKK 110‐115 million range, up from DKK 100‐105 million. This guidance is maintained.

Statement by Management

The Board of Directors and the Executive Management today considered and approved the interim report of Chemo‐ Metec A/S for the period 1 July to 31 December 2020. The company's independent auditors have not audited or re‐ viewed the interim report.

The interim report is presented in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and addi‐ tional disclosure requirements of the Danish Financial Statements Act. The accounting policies are unchanged from those applied in the latest annual report. In addition, the interim report and the management's review have been pre‐ sented in accordance with Danish disclosure requirements for interim reports of listed companies.

In our opinion, the interim report gives a true and fair view of the Group's assets, liabilities and financial position as at 31 December 2020 and of the results of the Group's operations and cash flows for the period 1 July ‐ 31 December 2020.

Furthermore, in our opinion the management's review includes a fair review of the performance of the Company's operations and financial conditions, of the net results for the period and the financial position while also describing the significant risks and uncertainties that may affect the Group.

Allerød, 5 February 2021

Executive Management:

Steen Søndergaard

CEO

Board of Directors:

Preben Kønig Martin Glensbjerg Peter Reich Kirstine Færch

Chairman Vice Chairman

Income statement

and statement of comprehensive income

DKK 1,000	H1 2020/21	H1 2019/20	2019/20
Revenue		132,981 103,599 214,101
Work performed at own expense and entered under assets		3,612 4,196 8,563
Change in inventory of finished goods and work in progress	‐290		‐4,336 5,595 ‐
Cost of goods sold	‐18,339		‐9,551 23,150 ‐
Gross profit		117,964 93,908 193,919
Other external costs	‐10,410		‐12,996 25,728 ‐
Staff costs	‐40,419		‐37,160 75,581 ‐
Amortisation, depreciation and impairment	‐9,501		‐7,319 15,140 ‐
Operating profit (EBIT)		57,634 36,433 77,470
Financial income		67 411 47
Financial expenses	‐4,351		‐899 1,594 ‐
Profit before tax		53,350 35,945 75,923
Tax on profit for the period	‐11,072		‐8,491 16,760 ‐
Net profit for the period	42,278	27,454	59,163
Items which are moved to the income statement under certain conditions:
Translation adjustment in foreign subsidiaries		‐33 3 3
Other comprehensive income after tax		‐33 3 3
Comprehensive income for the period	42,245	27,457	59,166
Earnings pershare in DKK
Earnings pershare (EPS)		2.43 1.68 3.51
Diluted earnings pershare (EPS‐D)		2.43 1.68 3.51

Balance sheet

Assets

	31 December	31December	30 June
	2020	2019	2020
DKK 1,000
Note
Completed development projects		29,429 26,695 28,398
Acquired patents and licenses		2,438 3,088 2,787
Development projects in progress		22,464 18,498 20,198
Intangible assets		3 54,331 48,281 51,383
Land and buildings		23,867 20,850 20,550
Plant and machinery		13,747 13,739 14,630
Other fittings and equipment		7,286 5,855 6,758
Property, plant and equipment in progress	‐	‐	1,423
Property, plant and equipment		4 44,900 40,444 43,361
Deposit		166 112 111
Financial assets		166 112 111
Total non‐current assets		99,397 88,837 94,855
Inventories		5 25,402 20,895 25,112
Trade receivables		6 46,639 39,043 35,441
Other receivables		7,399 1,828 7,837
Income tax receivable		1,935 970 1,059
Prepayments	‐	‐	1,871
Receivables		55,973 41,841 46,208
Cash		108,051 291,322 96,941
Total current assets		189,426 354,058 168,261
TOTAL ASSETS	288,823	442,895	263,116

Balance sheet

Equity and liabilities

	31 December	31December	30 June
	2020	2019	2020
DKK 1,000
Note
Share capital		17,402 17,402 17,402
Other reserves		201,490 379,872 185,349
Equity		218,892 397,274 202,751
Contingent consideration		7 1,090 626 1,070
Deferred tax		22,398 17,656 10,425
Lease liabilities		751 1,420 1,190
Non‐current liabilities		24,239 19,702 12,685
Lease liabilities		620 807 677
Interest‐bearing debt		411 784 424
Trade payables		7,562 6,103 8,427
Income tax	1,995 ‐		11,426
Prepayments from customers		14,830 4,827 9,207
Other payables		20,274 13,398 17,519
Current liabilities		45,692 25,919 47,680
Total liabilities		69,931 45,621 60,365
TOTAL EQUITY AND LIABILITIES	288,823	442,895	263,116

Other notes 8, 9, 10

Statement of changes in equity

	31 December 2020	31December 2019	30 June 2020
DKK 1,000
Note
Share capital		17,402 17,402 17,402
Other reserves		201,490 379,872 185,349
Equity		218,892 397,274 202,751
Contingent consideration		7 1,090 626 1,070
Deferred tax		22,398 17,656 10,425
Lease liabilities		751 1,420 1,190
Non‐current liabilities		24,239 19,702 12,685
Lease liabilities		620 807 677
Interest‐bearing debt		411 784 424
Trade payables		7,562 6,103 8,427
Income tax	1,995 ‐		11,426
Prepayments from customers		14,830 4,827 9,207
Other payables		20,274 13,398 17,519
Current liabilities		45,692 25,919 47,680
Total liabilities		69,931 45,621 60,365
TOTAL EQUITY AND LIABILITIES	288,823	442,895	263,116

Other notes 8, 9, 10

Cash flow statement

DKK 1,000	H1 2020/21	H1 2019/20	2019/20
Operating profit (EBIT)		57,634 36,433 77,470
Amortisation and depreciation		9,501 7,375 15,140
Changes in net working capital	‐1,646		‐10,592 7,818 ‐
Income tax paid	‐9,406		‐7,471 11,634 ‐
Interest received	‐	105 47
Interest expenses paid	‐487		‐899 1,189 ‐
Cash flow from operating activities		55,596 24,951 72,016
Purchase of tangible assets	‐8,037		‐6,695 14,288 ‐
Disposal of tangible assets	‐	78 129
Purchase of intangible assets	‐6,125		‐6,207 12,446 ‐
Acquistion of other non‐current assets	‐54		‐1 ‐
Cash flow from investing activities	‐14,216		‐12,825 26,605 ‐
Debt financing:
Payment of lease liabilities	‐496		‐449 809 ‐
Raising of lease liabilities	‐	2,676 2,676
Repayment to mortgage credit institutions	‐		‐17,762 17,982 ‐
Raising/repayment of debt to credit institutions	‐13		‐249 389 ‐
Shareholders:
Dividend paid	‐26,104		‐121,900 348,133 ‐
Sale of own shares	‐	318,376 318,377
Cash flow from financing activities	‐26,613		180,692 46,260 ‐
Change in cash	14,767		192,818 849 ‐
Cash beginning of year		96,941 98,205 98,195
Translation adjustment of cash	‐3,657		299 405 ‐
Cash end of period	108,051	291,322	96,941
Cash and cash equivalents composed asfollows:
Cash		108,051 291,322 96,941
Cash end of period	108,051	291,322	96,941

Notes to the consolidated financial statements

1. Accounting policies

The interim report is presented in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and addi‐ tional disclosure requirements of the Danish Financial Statements Act. The accounting policies are unchanged from those applied in the latest annual report, to which reference is made.

2. Segment information

The segment information has been prepared in accordance with the Group's accounting policies and is based on the Group's internal management reporting.

Based on the internal reporting used by management to assess the results of operations and allocation of resources, the company has identified four segments: Instruments, consumables, service and other, which is in accordance with the way the activities are organised and managed.

Segment	Description
Instruments	Sales of instruments
Consumables	Sales of disposable cassettes, counting chambers and reagents
Service	Sales of services
Other	Sales of measuring modules and accessories etc.

The Group does not use systems registering all costs by segment, which is why the operating results by segment are calculated proportionately based on the total net revenue. When the Group's management makes decisions about the allocation of resources etc., the decisions are also based on revenue figures by segment, while the operating re‐ sult is always assessed for all segments combined.

Segment revenue and operating profit:

	H1 2020/21	H1 2019/20	H1 2020/21	H1 2019/20
DKK 1,000	Revenue		Operating profit (EBIT)
Instruments		64,369 54,000 27,953 18,990
Consumables		50,355 41,853 21,867 14,719
Service contracts		12,446 2,261 5,405 795
Other		5,811 5,485 2,409 1,929
Total		132,981 103,599 57,634 36,433
Net financials			‐4,284 ‐488
Profit before tax			53,350 35,945

2. Segment information (continued)

Segment assets and liabilities:

	31 December	31December
	2020	2019
Instruments	82,904 77,489
Consumables	64,854 60,058
Service contracts	16,030 3,245
Other	7,484 7,871
Not allocated	117,551 294,232
Total assets	288,823 442,895
Instruments	15,426 14,576
Consumables	11,215 11,298
Service contracts	17,602 610
Other	1,295 1,481
Not allocated	24,393 17,656
Total liabilities	69,931 45,621

Revenue by geographical market:

				H1 2020/21
		USA/
DKK 1,000	Europe	Canada	Other (ROW)	Total
Instruments	24,302 29,236 10,831 64,369
Consumables	18,045 25,371 6,939 50,355
Service contracts	3,759 8,509 178 12,446
Other	2,139 3,344 328 5,811
Total	48,245 66,460 18,276 132,981

		USA/
DKK 1,000	Europe	Canada	Other (ROW)	Total
Instruments	16,237		30,094 7,669 54,000
Consumables	14,160		22,017 5,676 41,853
Service contracts	306		1,955 ‐	2,261
Other	3,065		1,519 901 5,485
Total	33,768		55,585 14,246 103,599

H1 2019/20

2. Segment information (continued)

Revenue by business area:

		Production and quality control of	Production control of beer and quality	H1 2020/21
DKK 1,000	LCP market	animal semen	control of milk	Total
Instruments			61,239 2,393 737 64,369
Consumables			40,886 7,415 2,054 50,355
Service contracts		12,446 ‐	‐	12,446
Other			5,227 441 143 5,811
Total			119,798 10,249 2,934 132,981

		Production and quality control of	Production control of beer and quality	H1 2019/20
DKK 1,000	LCP market	animal semen	control of milk	Total
Instruments	51,695		1,604 701 54,000
Consumables	32,894		6,835 2,124 41,853
Service contracts	2,261	‐	‐	2,261
Other	3,999		635 851 5,485
Total	90,849		9,074 3,676 103,599

ChemoMetec's products are sold within various business areas that may vary over time. The breakdown of revenue by business area is among other things based on allocation keys as customers within the various business areas may use the same consumables. Thus, the breakdown of revenue by business area is subject to uncertainty. The three most important business areas are the following:

Business area 1

LCP market: Life Science Research, Cell‐based Therapy and Pharmaceutical Process and Quality Control (Instruments: NC‐200, NC‐202, NC‐250, NC‐3000, the NC‐100 family as well as Xcyto 5 and 10).

Business area 2

Production and quality control of animal semen (Instrument: SP‐100).

Business area 3

Production control of beer (Instrument: YC‐100) and quality control of milk (Instruments: SCC‐100 and SCC‐400).

Information on significant customers

In the period, no single customer accounted for more than 10% of total revenue.

3. Intangible assets

DKK 1,000	Completed development projects	Acquired patents and licences	Projects in progress
Cost at 1 July 2020		81,291 18,912 20,198
Additions		3,642 217 2,266
Disposals	‐	‐	‐
Cost at 31 December 2020		84,933 19,129 22,464
Amortisation at 1 July 2020		‐52,893 ‐	16,125 ‐
Amortisation		‐2,611 ‐	566 ‐
Amortisation at 31 December 2020		‐55,504 ‐	16,691 ‐
Carrying amount at 31December 2020		29,429 2,438 22,464

	Completed development	Acquired patents and
DKK 1,000	projects	licences	Projects in progress
Cost at 1 July 2019	77,045	18,143 12,767
Additions	‐	476 5,731
Disposals	‐	‐	‐
Cost at 31 December 2019	77,045	18,619 18,498
Amortisation at 1 July 2019		‐47,917 ‐	14,907 ‐
Amortisation	‐	2,433 ‐	624 ‐
Amortisation at 31 December 2019		‐50,350 ‐	15,531 ‐
Carrying amount at 31December 2019	26,695	3,088 18,498

Of the recognised completed development projects, DKK 29.4 million is attributable to Xcyto products, including the NC‐202, Xcyto 5 and 10 (H1 2019/20: DKK 26.6 million was attributable to Xcyto products, while DKK 0.1 million was attributable to the NC‐250).

Of the recognised development projects in progress, DKK 22.5 million is attributable to Xcyto products, including the XcytoMatic and new applications (H1 2019/20: DKK 18.5 million was attributable to Xcyto products and products based on the Xcyto technology).

4. Tangible assets

			Other fittings and
DKK 1,000	Land and buildings	Plant and machinery	equipment
Cost at 1 July 2020	25,610 35,815 18,051
Exchange rate adjustments		‐224 ‐	230 ‐
Additions	4,148 1,671 2,218
Disposals		‐900 ‐	8 ‐
Cost at 31 December 2020	28,634 37,486 20,031
Depreciation at 1 July 2020		‐3,637 ‐	21,185 11,293 ‐
Exchange rate adjustments		61 ‐	206
Depreciation		‐2,091 ‐	2,554 1,666 ‐
Disposals		900 ‐	8
Depreciation at 31December 2020		‐4,767 ‐	23,739 12,745 ‐
Carrying amount at 31December 2020	23,867 13,747 7,286

			Other fittings and
DKK 1,000	Land and buildings	Plant and machinery	equipment
Cost at 1 July 2019	21,083	29,601 14,764
Exchange rate adjustments	‐	‐	7
Additions	2,512	2,663 1,520
Disposals	‐	‐	257 ‐
Cost at 31 December 2019	23,595	32,264 16,034
Depreciation at 1 July 2019		‐2,081 ‐	16,153 9,069 ‐
Exchange rate adjustments	‐	‐	4 ‐
Depreciation		‐664 ‐	2,372 1,282 ‐
Disposals	‐	‐	176
Depreciation at 31December 2019		‐2,745 ‐	18,525 10,179 ‐
Carrying amount at 31December 2019	20,850	13,739 5,855

Of land and buildings, assets held under finance leases amount to a book value of DKK 1.4 million (H1 2019/20: DKK 2.1 million).

5. Inventories

	31December	31 December	30 June
DKK 1,000	2020	2019	2020
Raw materials and consumables		19,896 17,227 20,798
Finished goods		5,506 3,668 4,314
		25,402 20,895 25,112
Indirect production costs included		1,106 459 689
Write‐down of inventories included in
production costs for the period		304 422 147

Of the carrying amount, DKK 0 is expected to be realised after more than 12 months.

6. Trade receivables

DKK 1,000	31December 2020	31 December 2019	30 June 2020
Trade receivables before write‐downs		48,037 40,293 37,151
Change in expected credit losses: Write‐down beginning of period Change in write‐down		1,710 800 800 ‐312 450 910
Write‐down end of period		1,398 1,250 1,710
Trade reveivables after write‐downs		46,639 39,043 35,441

Total credit losses concern doubtful debts and single customers subject to bankruptcy or reconstruction proceedings Credit insurance is not used, and all trade receivables fall due within one year. The age distribution of trade receivables improved during the period, and as a result, provisions for credit losses were reduced.

7. Contingent consideration

	31December	31 December	30 June
DKK 1,000	2020	2019	2020
Contingent consideraton beginning of period		1,070 593 593
Used during the period	‐302		‐114 372 ‐
Additions in the period		322 147 849
Contingent consideration end of period		1,090 626 1,070

8. Contingent liabilities

The Group is not aware of any claims or threats of claims made against the Group as at the balance sheet date.

9. Related parties

Related parties with significant influence comprise management and shareholders holding an ownership interest of more than 20% of the share capital.

At the balance sheet date, no shareholders hold an ownership interest of more than 20%. In the first half of 2020/21, ChemoMetec Holding A/S reduced its ownership interest to less than 20%, see company announcement no. 197.

In the interim period, the company has had the same type and scope of related party transactions as described in the 2019/20 annual report. The transactions have not had any material impact on the interim report.

10. Events after the balance sheet date

No significant events have occurred after 31 December 2020 that affect the interim report.

Disclaimer

The English translation has been prepared solely for the convenience of English-speaking readers. Despite all the efforts devoted to this translation, certain discrepancies, omissions, or approximations may exist. In case of any differences between the Danish and the English versions, the Danish version shall prevail.