Medistim

Quarterly Report • Oct 24, 2019

• Sales ended at MNOK 85.5 for the quarter (MNOK 77.6), a 10.2 % growth. Sales as of September increased by 17.6 % and ended at MOK 268.1 (MNOK 228.0)
• Revenue from own products showed a currency neutral increase of 15.9 % for the quarter and a currency neutral growth of 18.8 % YTD
• There has been a solid growth in sales of combined ultrasound imaging and flow systems. Number of systems sold or leased increased with 107 % for the quarter and with 77 % year to date.
• Operating profit (EBIT) for the quarter ended at MNOK 19.1 (MNOK 14.5). Operating profit as of September ended at MNOK 70.0 (MNOK 46.2)

• MiraQ, Medistims newst product that combines flow measurement and ultrasound imaging, is cleared for sales in Japan.

3rd quarter 2019

COMMENTS FROM CEO KARI E. KROGSTAD

Q3 2019 was, overall, a new good quarter for Medistim. The company delivers currency neutral sales growth of 6.3%. A weaker Norwegian krone against both dollar and euro compared to last year, helps growth in Norwegian kroner to remain at a double-digit level and 10.2%.

The more moderate growth we see this quarter compared to the previous two quarters is largely explained by the fact that third-party products showed a 25% decline. Looking only at Medistim's own products, growth delivered in Norwegian kroner 21.1% and currency-adjusted growth is 15.9%. We are very pleased with this.

We continue to see strong growth in sales of the product portfolio related to the combined use of flow measurements and ultrasound imaging, that is, the MiraQ system with imaging and imaging probes. Sales revenue from these products increased by 102% this quarter. This shows that the acceptance of ultrasound imaging as a complement to flow measurements continues to increase, and so far this year, sales are growing by 75.4%,

Geographically, we have a strong growth contribution from Asia during this quarter, with sales increasing by as much as 103%. Sales of own products in Europe are growing by 16.7%, while the US, which has shown particularly strong growth in the last 3 quarters, is contributing 7.3% growth in the Norwegian kroner, but is down 1% in dollars. The quarterly results for both Asia and the US illustrate the variation that we have seen, and will continue to see, from quarter to quarter. We do not see any negative changes in the underlying market drivers, and we are very pleased with the development in all our geographical areas.

Product sales to the vascular segment show good growth with 33.8% growth this quarter, while growth so far this year is 10.9%. The increase is largely due to new customers, which is in line with the company's focus and commitment to this segment.

Sales of third-party products are disappointing this quarter, and the decline of 25% compared to the same quarter last year is mainly due to the fact that at that time we had a rare sale of a lithotripsy device (kidney crusher) for about 3 MNOK. So far this year, third-party products are down 4.4%. The proportion of third party products is declining and now accounts for less than 20% of total sales.

Also this quarter, Medistim delivers very good profitability, with an EBIT margin of 22.4% compared to 18.7% last year. The growth in both gross profit and operating profit is a direct consequence of the higher proportion of sales of own products with a higher margin.

It is gratifying that Medistim has now received clearance for the sale of MiraQ, the latest generation of systems, in the Japanese market. Japan is an almost fully penetrated market in cardiac bypass surgery, with a large installed base for Medistim. We expect upgrades to the latest generation will contribute to continued good development in this.

23rd of October 2019 Kari E. Krogstad CEO

FINANCIAL DEVELOPMENT

(Comparative numbers for 2018 in parenthesis)

Sales and geographic split

Sales in the 3rd quarter ended at MNOK 85.5 (MNOK 77.6), a 10.2 % increase. There was a growth in all regions except Europe where sales decreased with 3.7 %. The shortfall in revenue was related to weaker sales of 3.party products that decreased wit 25.0 %. Sales of own products increased with 16.7 % in Europe. In the USA sales increased with 7.3 %. Asia had the strongest growth with a 102 % increase. In "other markets" there was a 2.2 % growth.

Sales as of September increased with 17.6 % and ended at MNOK 268.1 (MNOK 228.0). There was a growth measured in NOK in all regions. In USA there was an increase measured in NOK of 35.8 %. In Europe there was a 0.9 % growth where 3.party products decreased with 4.4 % and sales of own products increased with 5.6 %. In Asia and other markets there was a growth of 25.2 % and 48.8 % respectively.

Split between recurring sales and capital sales in TNOK

Sale of Medistims own products can be split in capital sales of systems and repeating sales of probes, smatcards and lease revenue which is defined as recurring revenue. For 2018 recuring sales was 71.5 % of total sales of own products. The year to date September 2019 comparable number was 72.3 %.

The effect from currency

With the same rates as in 2018 sales would have amounted to MNOK 82.5 for the quarter, a currency neutral growth of 6.3 %. Similar as of September would have resulted in sales of MNOK 258.2, a currency neutral growth of 13.2 %.

Split of own products and 3.party products.

Sales of own products amounted to MNOK 71.7 (MNOK 59.2). Sales of 3.party products ended at MNOK 13.8 (MNOK 18.4). As of September sales of own products ended at MNOK 215.9 (MNOK 173.4) and sales of 3.party products ended at MNOK 52.1 (MNOK 54.5).

For sales of own products in the third quarter MNOK 62.2 was sales within the cardiac segment, while MNOK 9.5 was sales to the vascular segment, so the vascular segment represented 13.3 % of sales of own products. Similar percentage year to date was 13.0 % towards the vascular segment.

Cost of goods sold

Cost of goods sold ended at MNOK 18.5 for the quarter (MNOK 21.5) and cost of goods sold represent a percentage of 21.6 % of total sales (27.7 %). As of September cost of goods sold ended at MNOK 60.3 (MNOK 58.4), which represent a percentage of 22.5 % (25.6 %). The main reason for the lower level of cost of goods sold was related to higher level of sales of own products compared to 3.party products.

Salary, social and other operating expenses

Salaries and social expenses ended at MNOK 32.2 (MNOK 26.9) for the quarter. Other operating expenses ended at MNOK 11.3 (MNOK 11.6) for the quarter. As of September salaries and social expenses ended at MNOK 86.8 (MNOK 74.5). Other operating expenses ended at MNOK 37.7 (MNOK 39.6). The increase in salary expenses was related 7 new employees within production, logistics, service and product development. Increase in salary expenses was also related to currency and accrued bonuses and commissions.

R & D expenses

For the quarter MNOK 3.5 (MNOK 2.6) was used within research and development (R&D). Result before R & D, depreciations and write offs was MNOK 26.3 (MNOK 19.6). This equals a margin of 30.7 % (25.2 %). During the quarter MNOK 0.8 of the R & D expense was activated in the balance sheet (MNOK 0.7).

As of September MNOK 9.2 (MNOK 7.0) was used within research and development (R&D). Result before R & D, depreciations and write offs was MNOK 88.6 (MNOK 60.0). This equals a margin of 33.1 % (26.3 %). As of September MNOK 3.8 (MNOK 2.4) of the R & D expense was activated in the balance sheet.

Earnings

Operating profit before depreciation (EBITDA) for the quarter ended at MNOK 23.6 (MNOK 17.6). Operating profit before depreciation (EBITDA) as of September ended at MNOK 83.2 (MNOK 55.5).

Result before tax and finance (EBIT) ended at MNOK 19.2 (MNOK 14.5) for the quarter. As of September result before tax and finance (EBIT) ended at MNOK 70.0 (MNOK 46.2).

Net finance ended positive with MNOK 0.3 for the quarter (negative MNOK 0.3).

As of September net finance ended positive with MNOK 0.9 (negative MNOK 2.1). Net finance was related to realized

and unrealized gains or losses related to currency, hedging contracts, cash in USD and EUR and customer receivables.

Result before tax was MNOK 20.6 (MNOK 14.2) for the quarter. Result after tax for the quarter was MNOK 16.7 (MNOK 11.0). As of September result before tax was MNOK 70.9 (MNOK 44.1). Result after tax as of September was MNOK 54.8 (MNOK 33.2).

Result per share for the quarter was NOK 0.92 (NOK 0.61). Result per share as of September was NOK 3.01 (NOK 1.82). Average number of shares outstanding was 18.188.836 (18. 178.836) by end of September 2019.

Balance sheet

Equity by the end of September was MNOK 223.1 (MNOK 180.3). This equals an equity ratio of 79.1 % (77.1 %).

Cash as of 30th of September was MNOK 49.0 (MNOK 35.7) and the company had MNOK 8.2 in interest bearing debt. A dividend of MNOK 40.9 was paid in May.

The balance sheet ended at MNOK 282.3, an increase of MNOK 12.7 from MNOK 269.6 by the beginning of the year.

OPERATIONAL STATUS

Europe

In Europe there was an increase in sales of 16.7 % in sales of own products. The growth was driven by system sales that will secure future probe sales. Sale of third party products had a reduction of 25 % and ended at MNOK 13.8. As of September sales of 3.party products decreased with 4.2 %. Sales of own products ended at MNOK 64.9, which represent an 5.6 % increase or MNOK 3.4.

USA

Medistim has a business model in the US that is based upon a leasing model and sale of procedures, but also offer capital sale as in other markets.

The US ended the third quarter with an increase in sales in NOK of 7.3 % compared to last year. Currency neutral sales declined 1.0 %. For the quarter there was sold 14.275 procedures compared to last year 13.022. During the quarter 2.384 (1.647) procedures was sold to customers using the imaging system. Further, 11.890 flow procedures were sold (11.375) during the quarter.

Sales in NOK increased with 35.8 % as of September 2018. Currency neutral sales increased by 25.3 %. As of September there were sold 46.747 procedures (38.015) of which 7.415 were imaging procedures (4.910) and 39.372 flow procedures (33.105).

The neutral development for the quarter was related to weaker capital sales, and 4 less units sold represent MNOK 2.4 in revenue. Capital sales for the quarter was 4 units compared to 8 units last year. Of the 4 units sold 2 of them was with the combined flow and imaging functionality. For last year 2 of the 8 systems sold was on the combined solution.

Capital sales as of September was 25 units compared to 15 units last year. Of the 25 units sold 12 of them was with the combined flow and imaging functionality. For last year 5 of the 15 systems sold was on the combined solution. MNOK 10.0 of the sales increase was related to capital sales as of September.

In the US about 75 % of the bypass surgeries are performed with no other quality assurance of blood flow other than the surgeons experience by feeling pulse on the vessels using the finger. It is clinically proven that this method is not reliable. It is therefore a large potential and need for Medistims products in the US. Medistim has large ambitions in the US market. So far Medistim has achieved a market penetration of more than 23.0 % of the total market of approximately 220.000 bypass surgery procedures performed annually. Medistim has a market penetration of about 70-80 % in Germany, Scandinavia and Japan. Medistim expect that the market penetration in the US will develop in the same manner over time.

Asia

In Asia there was an increase in sales for the quarter with 102 %, while as of September sales increased with 25.2 %. The number of the combined flow and ultrasound imaging systems sold in Asia in 2019 has had a solid growth with an 61 %increase in number of units. The systems sales creates the basis for future sale of consumables for both flow probes and imaging probes, which increased in number of units with 20 % and 66 % respectively as of September.

During the third quarter Medistim received confirmation from its distributor in Japan that its newest product, The MiraQ, is approved for sale in Japan. Medistim is now in position to sell MiraQ in all major markets except Canada where an application is in process.

Japan is a substantial market for Medistim with about 400 hospitals performing on average 20 000 cardiac procedures per year. Medistim's equipment is used in more than 80 % of the procedures. It is expected that a large portion of existing users over time will purchase the new product MiraQ. Medistim's products are well accepted in the Japanese market and the company is optimistic with regard to future sales of MiraQ in Japan.

Other markets (Middle-East, Africa, South America and Canada)

In other markets sales for the third quarter increased with 2.3 % compared to last year. Year to date sales increased with 48.8 %. In total this is marginal markets that have little effect on total sales, and where quarterly sales vary.

PROSPECTS AND TRENDS

Goals and vision

The company aims to develop products to meet surgeons' growing need for quality control of heart-bypass surgery, peripheral vascular surgery and transplant surgery. Our vision is that Medistim's solutions should represent the «standard of care» for clinical practice and that blood flow measurements and intraoperative ultrasound imaging are performed on all patients.

Strategy

Medistim's focus is to strengthen the company's ability to effectively commercialize existing product portfolio on a global basis. One of the key tasks to achieve this is closer contact with customers through a strengthened sales and marketing organization. Another important task is to produce enhanced clinical documentation and focus on putting blood flow measurements, ultrasound imaging, surgical guidance and quality assurance on the agenda in relevant forums and channels.

Continious technology and product development will secure Medistims products and leading position within cardiac surgery also in the future. The company also has ambitions to launch new products adapted to specialities within vascular- and transplant surgery.

Market size and trends

On a global basis it is performed more than 700,000 heart bypass surgeries per year. The US represents the largest market for Medistims products with 1/3 of the world market. The global number of procedures has in the past been constant. The decrease in number of procedures perfomed in the western countries has been compensated by an increase in the BRIC countries (Brazil, Russia, India and China). It is therefore expected to have a stabil growing trend in the years to come.

Adding intraoperative ultrasound imaging to flow measurements more than doubles Medistims market potential, because of new applications and relevance and higher pricing compared to traditional flowmeasurement technollogy. Total market size within cardiac surgery is estimated to be 2 billion NOK annualy. The imagingfunctionallity makes MiraQTM and VeriQC relevant in other cardiac surgeries and not just by pass surgery. Medistim estimates this potential to be 1 billion NOK.

In addition, the company has a significant potential within the global vascular market, which is estimated to be about 600,000 vascular procedures annually. Total market size within vascular surgery is estimated to be over 1 billion NOK.

The trend in surgery moves towards less intervention and keyhole surgery, which gives the surgeon less workspace and the ability to control in a traditional way. It is therefore an increased need to verify the desired result in the future.

Global demographic trends are an important driving force for the many cost-efficiency measures around the world. Focus on quality is growing, driven by the need to reduce costs, particularly related to correction of errors, the need for repeated treatments and repeated hospital admissions. Medistim therefore has a good opportunity to position their products as an important contributor to achieving these goals.

Position and Competition

Medistim's flow meters have been in use in more than 2.0 million patients worldwide since it came on the market, and the company is the clear leader in its niche. In total Medistim has installed 2600 systems in more than 60 countries. The equipment is used today in more than 32 % of the total number of by-pass surgeries performed worldwide. Medistims penetration and market share is expected to increase gradually as quality assurance in surgery is getting more attention and acceptance.

There are competitors that use the transit time measurement principle. Equipment from competitors is estimated to be in use in about 5 % of the procedures performed. This means that in about 65 % of the cases where by pass surgery is performed there is no equipment in use to verify blood flow. This market represent Medistim's largest opportunity. With Medistim's Ultrasound imaging technollogy and MiraQTM platform, the company has acquired a new edge compared to competitors, with unique and differentiated products that is currently alone in its segment.

Exposure towards currency

The company is exposed to EUR and USD. Exposure can vary depending on how large share of revenues and costs USD and EUR account for of total income and expenses. For 2019 a 10 % change in the exchange rate against USD and EUR would result in a 8.0 % change in sales and a 9.2 %

change in operating result. The company partly secures its positions with hedging contracts.

SHARHOLDER AFFAIRS

The company had 148.500 Medistim shares by the end of September 2019. The shares were purchased at a price per share of NOK 14.70. The share price was NOK 170.00 per share at the end of the quarter. For comparison entering 2019 the share price was 71.00 per share.

The number of shares sold as of September 2019 was 3.030.226. The five largest shareholders were Intertrade Shipping AS with 4.003.500 shares, Salvesen & Thams Invest AS with 1.862.500 shares, Follum Capital with 1.000.000 shares, Rorbur with 910.246 and Skandinaviske Enskilda with 723.072 shares.

Accumulated sales per quarter

Historical dividend in NOK per share paid by Medistim

Accumulated operating profit per quarter

Oslo 23rd of October 2019, Board of Directors and managing director in Medistim ASA

Profit & loss	3. quarter 19	3. quarter 18	As of 30.09.19	As of 30.09.18	2018
All numbers in NOK 1000
Sales	85 517	77 613	268 050	227 967	325 890
Cost of goods sold	18 463	21 521	60 302	58 382	79 381
Salary and sosial expenses	32 156	26 907	86 832	74 523	105 314
Other operating expenses	11 258	11 606	37 687	39 599	54 857
Total operating expenses	43 414	38 513	124 519	114 122	160 171
Opr. res.before. depr. and write offs	23 640	17 579	83 229	55 463	86 337
EBITDA %	27,6 %	22,6 %	31,0 %	24,3 %	26,5 %
Depreciation	4 462	3 070	13 214	9 240	12 361
Operating result	19 178	14 509	70 015	46 223	73 977
EBIT %	22,4 %	18,7 %	26,1 %	20,3 %	22,7 %
Financial income	3 255	1 425	4 161	4 179	7 977
Financial expenses	1 799	1 758	3 282	6 265	7 475
Net finance	1 455	(333)	879	(2 085)	502
Pre tax profit	20 634	14 177	70 894	44 138	74 479
Tax	3 916	3 151	16 076	10 974	17 423
Result	16 717	11 026	54 818	33 163	57 055
Dividend	-	-	31 782	29 950	29 950
Comprehensive income
Result after tax	16 717	11 026	54 818	33 163	57 055
Exchange differences arising	-	-	-	-	-
on translation of foreign operations	3 989	685	2 539	497	1 916
Total comprehensive income	20 706	11 711	57 357	33 660	58 971

Key figures		3. quarter 19		3. quarter 18		As of 30.09.19		As of 30.09.18		2018
Equity share		79,1 %		77,1 %		79,1 %		77,1 %		76,7 %
Earnings per share		0,92		0,61		3,01		1,82		3,14
Earnings per share diluted	kr	0,92	kr	0,61	kr	3,01	kr	1,82	kr	3,14
Average shares outstanding in 1000		18 189		18 179		18 189		18 178		18 178
Average shares outstanding in 1000 diluted		18 189		18 179		18 189		18 178		18 178

Split of operating profit
per segment	3. quarter 19	3. quarter 18	As of 30.09.19	As of 30.09.18	2018
All numbers in NOK 1000
Res from Medistim products	18 829	13 626	62 772	40 650	65 791
Margin Medistim products	26,3 %	23,0 %	29,1 %	23,4 %	25,8 %
Res from 3rd party products	349	883	7 243	5 573	8 186
Margin 3rd party products	2,5 %	4,8 %	13,9 %	10,2 %	11,5 %
Totalt result	19 178	14 509	70 015	46 223	73 977
Margin	22,4 %	18,7 %	26,1 %	20,3 %	22,7 %

Balance sheet	30.09.2019	30.09.2018	31.12.2018
All numbers in NOK 1000
Assets
Intangible assets	40 943	42 609	41 944
Fixed assets	43 819	29 205	37 198
Total tangible and fixed assets	84 762	71 814	79 142
Inventory	71 631	58 786	63 843
Customers receivables	64 825	57 968	70 807
Other receivables	12 008	9 588	8 309
Cash	49 035	35 658	47 490
Total current assets	197 499	162 000	190 450
Total assets	282 261	233 814	269 592
Equity and liability
Share capital	4 585	4 585	4 585
Share premium reserve	44 172	41 852	44 172
Other equity	174 387	133 849	157 955
Total equity	223 144	180 286	206 712
Total long term debt	6 929	8 250	7 500
Total short term debt	52 188	45 278	55 380
Total equity and liability	282 261	233 814	269 592

Change in equity	30.09.2019	30.09.2018	31.12.2018
All numbers in NOK 1000
Equity start of period	206 712	182 984	182 984
Result for the period	54 818	33 163	57 055
Dividend	(40 925)	(36 358)	(36 358)
Medistim shares	-	-	1 115
Changes in exchangerates	2 539	497	1 916
Equity end of period	223 144	180 286	206 712

Cash flow analysis	30.09.2019	30.09.2018	31.12.2018
All numbers in NOK 1000
Result for the period	54 818	33 163	57 055
Cash flow from operation	(2 092)	(2 839)	(8 062)
Cash flow from operation	52 726	30 324	48 993
Cash flow from investments	(8 007)	(8 596)	(15 731)
Cash flow from financial activities	(43 175) - -	(40 482)	(40 182)
Change in cash for the period	1 544	- (18 754)	- (6 920)
	-	-	-
Cash at start of period	47 491	54 411	54 411
Cash by the end of period	49 035	35 657	47 491

Geographic split of sales	3. quarter 19	3. quarter 18	As of 30.09.19	As of 30.09.18	2018
All numbers in NOK 1000
USA	29 492	27 482	100 959	74 358	113 147
Asia	14 142	6 974	31 047	24 801	38 650
Europe	36 140	37 542	117 073	116 061	154 822
Rest of the world	5 743	5 615	18 971	12 747	19 271
Total sales	85 517	77 613	268 050	227 967	325 890
Geographic split
of sales in number of units	3. quarter 19	3. quarter 18	As of 30.09.19	As of 30.09.18	2018
USA
Procedures flow measurement	11 890	11 375	39 372	33 105	47 345
Procedures imaging and flow	2 385	1 647	7 415	4 910	7 380
Capital sales MiraQ and VeriQ flowmeasurement instrumen	2	6	13	10	15
Capital sales MiraQ and VeriQC imaging and flowmeasurem	2	2	12	5	15
Lease flow instrument	-	2	3	9	10
Lease imaging and flow instrument	2	1	8	2	9
Asia MiraQ and VeriQ flowmeasurement instrument	9	9	22	30	39
MiraQ and VeriQC imaging and flowmeasurement instrume	15	4	29	18	30
Imaging probes	12	5	25	15	24
Flowmeasurement probes	481	325	1 254	1 042	1 743
Europe
MiraQ and VeriQ flowmeasurement instrument	12	10	33	28	38
MiraQ and VeriQC imaging and flowmeasurement instrume	6	2	14	9	16
Imaging probes	5	7	15	15	30
Flowmeasurement probes	1 005	933	3 176	3 160	4 425
Rest of the world
MiraQ and VeriQ flowmeasurement instrument	4	3	8	11	12
MiraQ and VeriQC imaging and flowmeasurement instrume	4	5	13	9	15
Imaging probes	8	4	21	9	16
Flowmeasurement probes	191	260	862	522	812
Total sales outside the US in units
Number of MiraQ and VeriQ flow instruments outside USA	25	22	63	69	89
MiraQ and VeriQC imaging and flowmeasurement instrum	25	11	56	36	61
Total number of imaging probes	25	16	61	39	70
Total number of flowmeasurement probes outside USA	1 677	1 518	5 292	4 724	6 980
Split of sales per segment	3. quarter 19	3. quarter 18	As of 30.09.19	As of 30.09.18	2018
All numbers in NOK 1000
USA
Procedural revenue flow	17 342	16 603	61 349	51 309	75 163
Procedural revenue Imaging and flow	7 790	4 127	17 126	10 608	14 301
Capital sales MiraQ and VeriQ flowmeasurement instrumen	1 870	4 700	9 795	7 420	10 101
Capital sales MiraQ and VeriQC imaging and flowmeasure	2 490	2 051	12 689	5 022	13 582
Outside USA
MiraQ and VeriQ flowmeasurement instrument	6 292	6 296	14 566	17 326	22 409
MiraQ and VeriQC imaging and flowmeasurement instrume	11 517	4 899	24 828	15 732	26 358
Imaging probes	1 717	853	3 948	2 368	4 302
Flowmeasurement probes	22 507	18 890	68 384	60 710	85 684
Other	198	800	3 220	2 920	2 880
Total sale of Medistim products	71 723	59 220	215 906	173 414	254 780
Sale of 3 party products	13 795	18 393	52 144	54 553	71 110
Total sales	85 517	77 613	268 050	227 967	325 890
Split of sales between coronary
and vascular surgery and 3 party products All numbers in NOK 1000	3. quarter 19	3. quarter 18	As of 30.09.19	As of 30.09.18	2018
Sales within coronary surgery	62 202	52 102	187 735	148 012	218 005
Sales within vascular surgery	9 521	7 118	28 171	25 402	36 775
Sales of 3. party products	13 795	18 393	52 144	54 553	71 110
Total sales	85 517	77 613	268 050	227 967	325 890

Note Right-of-use assets and lease liabilities - effects of IFRS 16 changes

Right-of-use assets	Buildings	Vehicles	Total
Addition of right-of-use assets	5 829	1 839	7 668
Acquisition cost 1 January 2019	5 829	1 839	7 668
Accumulated depreciation and impairment 1 January 2019	-	-	-
Depreciation	3168	918	4086
Accumulated depreciation and impairment 30 September 2019	3 168	918	4 086
Carrying amount of right-of-use assets 30 September 2019	2 661	921	3 582
Lower of remaining lease term or economic life	1-2 years	1-3 years
Depreciation method	Linear	Linear
Lease liabilities
Undiscounted lease liabilities and maturity of cash outflows			Total
1-2 years	2 701	830	3 530
3-4 years		107	107
4-5 years		-	-
More than 5 years		-	-
Total undiscounted lease liabilities at 30 September 2019	2 701	937	3 637
Summary of the lease liabilities in the financial statements	Statement of:		Total
At initial application 01.01.2019			7 668
Cash payments for the principal portion of the lease liability	Cash flows		4 128
Interest expense on lease liabilities	Profit and loss		165
Depreciation on lease liabilities	Profit and loss		4 086
Total lease liabilities at 30. September 2019			3 582
Current lease liabilities	Financial position		2 727
Non-current lease liabilities	Financial position		855
Total cash outflows for leases	Cash flows		4 128