C-RAD

Earnings Release • Oct 27, 2023

October 27, 2023

All-time high revenue and stable profitability

Third quarter July – Sept 2023 Interim Period Jan – Sept 2023

• Order intake increased 108 percent to 168.6 (80.9) MSEK (87 percent in constant currencies).
• Order backlog amounted to 751.3 (493.3) MSEK.
• Revenue increased 33 percent to 111.2 (83.5) MSEK (16 percent in constant currencies).
• EBIT amounted to 18.9 (14.6) MSEK, corresponding to a margin of 17.0 (17.5) percent.
• Cash flow from operating activities amounted to 16.6 (-10.7) MSEK.
• Net earnings amounted to 10.9 (7.1) MSEK.

• Earnings per share amounted to 0.32 (0.21) SEK.

• Order intake increased 40 percent to 376.0 (268.1) MSEK (30 percent in constant currencies).

• Revenue increased 41 percent to 286.2 (202.5) MSEK (28 percent in constant currencies).
• EBIT amounted to 32.7 (15.5) MSEK, corresponding to a margin of 11.4 (7.7) percent.
• Cash flow from operating activities amounted to -17.4 (-22.1) MSEK.
• Net earnings amounted to 19.6 (3.0) MSEK.
• Earnings per share amounted to 0.58 (0.09) SEK.

Group summary

		Q3, JUL - SEP		INTERIM PERIOD JAN-SEPT				FULL YEAR
MSEK	2023	2022	Change	2023	2022	Change	LTM	2022
Order intake	168,6	80,9	108%	376,0	268,1	40%	592,5	484,6
Revenues	111,2	83,5	33%	286,2	202,5	41%	385,0	301,3
Gross profit	71,9	53,8	34%	184,0	130,6	41%	248,6	195,2
Gross margin (%)	65%	64%		64%	64%		65%	65%
EBIT	18,9	14,6	29%	32,7	15,5	110%	38,4	21,8 *
EBIT (%)	17,0%	17,5%		11,4%	7,7%		10,0%	7,2% *
Net earnings	10,9	7,1	53%	19,6	3,0	548%	23,7	7,5
Earnings per share (SEK)	0,32	0,21	53%	0,58	0,09	544%		0,22
Cash flow from operating activities	16,6	-10,7		-17,4	-22,1			9,7
Cash	89,8	95,6	-6%					121,9
Order backlog	751,3	493,3	52%					616,0
out of which Products	428,6	257,8	66%					355,7
out of which Services	322,7	235,5	37%					260,3

* Excluding non-recurring expenses relating to a change of management, EBIT for the year amounted to 26.1 MSEK, corresponding to a EBIT (%) of 8.6%

Order Intake and Revenue

CEO Comments

The demand for Surface Guided Radiation Therapy (SGRT) continues to be strong, which is demonstrated by the best-ever revenue of 111 MSEK in Q3 and an order intake of 169 MSEK.

With an EBIT of 19 MSEK, our focus on profitable growth is starting to show result. The large Spanish Proton order in the quarter of 32 MSEK from IBA, is yet another confirmation of our SGRT leadership in Proton therapy treatments. Proton, or particle therapy, is in the forefront of precise cancer therapy.

Despite challenging macro economics, the revenue increased 33 percent compared to third quarter last year and order intake had an impressive growth of 108 percent, which is strong even with the soft comparison from the same quarter last year. Our order backlog is now 751 MSEK. The underlying profitability remains stable, with a gross margin of 65 percent. We are continuing our journey towards profitable growth, with an EBIT in the quarter of 19 MSEK and the year-to-date comparison shows a 48 percent improvement of the EBIT margin compared to same period last year. We still have work to do to improve cash flow and we work on all fronts – short term with cash collection and long term on updating contracts terms and educating our sales force. Cash flow from operating activities for the quarter is 17 MSEK.

Our ambition to grow Services is demonstrated by a significant increase in the number of customers with active service contracts and the order intake for Services more than doubled in the quarter. This ensures a strong commitment to provide first-class services as well as an increase in recurring revenue.

Strong quarter for EMEA

EMEA had a strong quarter overall. The uptake for SGRT continues to be high. The 16 MSEK expansion order from North Rhine-Westphalia, Germany, displays trust in C-RAD and our technology. The 10 MSEK order from Katholisches Klinikum Bochum, Germany, is yet another example of how our technology plays an important role, not only for breast cancer, but also advanced cancer therapy including stereotactic radiation.

We ended the quarter on a high note, with a significant milestone in the field of particle therapy (proton) and the order from market leader IBA includes systems for multiple proton centers in Spain, with a total value of 32 MSEK, part of a public tender.

When a tumour grows in the brain, lung, eye, head and neck, or other locations radiation can pose a risk to critical tissue nearby. Particle therapy targets radiation of the tumour, leaving the areas around unharmed. The technology has been used clinically for more than 60 years and is effective for complex cancer cases as well as for young children and infants. I am proud to say that C-RAD is the market leader in SGRT for Particle Therapy.

Services attachment rate in Americas all-time high

Americas is starting to pick up again after a slow second quarter. I am pleased to see the important US West Coast gaining traction. Due to active and targeted sales and marketing activities, the interest in C-RAD's technology is increasing with US Cancer Centres. Americas services attachment rate reached an all-time high during the third quarter, firmly establishing the US as the leading region regarding service contracts for the installed base.

High activity level in APAC

The APAC region continue to have a high level of activity. We are starting to gain traction in India, with new orders to prominent corporate hospitals and medical colleges and are now present in most regions. The Chinese market is getting back from pre-covid levels, at the same time we are experiencing some slowdowns in the purchasing pattern. During the third quarter the first service contracts in China came into effect. We are starting from a low level, but Services is an excellent area for future for growth in the Chinese market.

This year, the North American MedTech tradeshow ASTRO (American Society for Radiation Oncology), took place in San Diego, USA. C-RAD had busy days, our live demo was in constant demand. Additional interest was created by the VitalHold™ breast package on the Radixact system, which includes our technology.

Integrated with our industrial partners

Interoperability is key for C-RAD and we are integrated with Elekta, Varian and Accuray as well as all key Proton suppliers. C-RAD's research and development teams have achieved significant milestones in the past quarter, and I'm delighted to have announced the launch of our latest software release, version 6.5. The release comes with improved usability for the clinical staff, accuracy, and the introduction of new innovative features thanks to the seamless integration with our industrial partners.

I would like to take a moment to reflect on my first nine months as CEO. I am pleased to have a passionate and experienced leadership team, strengthened by a new Global Marketing Director and a VP Sales EMEA. Together, we are building an empowered and an even stronger organisation. With market leading products and services, we can capture the demand for our technology and create a solid base for profitable growth. The untapped potential in key markets around the world is addressed step by step. Even if we see many markets rapidly approaching SGRT becoming standard of care, we are only in the beginning. In addition, we are starting to deliver on the priority to grow services.

Together, our hardworking customers, knowledgeable partners and a dedicated C-RAD team are able to secure the precise targeting of the tumour while minimizing radiation exposure to healthy tissues, thus safeguarding the overall well-being of patients. I think there is a good reason for all stakeholders to feel proud of being part of this immensely important work.

Uppsala October 27, 2023

Cecilia de Leeuw, CEO C-RAD AB

Financial development

Third quarter

Order intake

Order intake for the third quarter amounted to 168.6 (80.9) MSEK, a growth of 108 percent. In constant currencies, order intake increased 87 percent compared with the same quarter of 2022.

Order intake in EMEA grew by 222 percent to 99.6 MSEK. EMEA had a strong quarter and among others received three major orders: 32 MSEK proton therapy order to IBA and two orders to German customers of 16 MSEK and 10 MSEK.

Americas had a weak order intake in the second quarter. However, in this quarter the order intake recovered and increased compared to last year with 22 percent, to 25.6 MSEK.

In APAC, order intake increased 50 percent to 43.4 MSEK.

By category, the order intake for Products amounted to 119.8 MSEK in the quarter, an increase of 79 percent compared to the same period last year. The order intake for Services grew 244 percent to 48.8 MSEK.

Revenues

Revenues grew 33 percent to 111.2 (83.5) MSEK in the third quarter. In constant currencies, the growth was 16 percent.

Revenues grew in all three regions. Revenues in EMEA increased 35 percent to 54.2 (40.1) MSEK, revenues in the Americas increased 22 percent to 25.2 (20.7) MSEK and revenues in APAC increased 40 percent to 31.8 (22.7) MSEK. 83 percent of the revenues referred to Products and 17 percent to Services.

Year To Date

Order intake

For the full nine-month period, total order intake amounted to 376.0 (268.1) MSEK, an increase of 40 percent and 30 percent in constant currencies.

Order intake for Products increased 31 percent for the nine-month period, primarily as a result of the growth in the SGRT-market as well as C-RAD's strong position in the market. The order intake for Services increased 74 percent for the nine-month period compared with previous year. The continued rise in order intake for service contracts is a result of a very active work to increase the attachment rate and indicates customers' willingness to use C-RAD's complete range of solutions.

Revenue July – Sept Revenue January – Sept

Revenues

For the nine-month period, revenues amounted to 286.2 (202.5) MSEK, an increase of 41 percent and 28 percent in constant currencies.

Revenues for the nine-month period in EMEA increased 41 percent to 142.3 (100.6) MSEK, while revenues in the Americas increased 12 percent to 55.2 (49.5) MSEK. APAC revenues were 88.7 (52.5) MSEK, which was 68 percent higher than same period previous year.

Order backlog and order conversion rate

The order backlog represents orders that have been received but not delivered and invoiced. The backlog amounted to 751.3 (493.3) MSEK at the end of the quarter, an increase of 52 percent compared with same time last year. From the total order backlog, 428.6 (257.8) MSEK relates to products and 322.7 (235.5) MSEK relates to service contracts, with the order backlog for products increasing by 66 percent and the order backlog for service contracts increasing by 37 percent.

The weighted average delivery time for products recognized as revenue in the third quarter was nine months. The increase compared to previous quarter is due to deliveries during the current quarter related to orders recorded during end of 2020 and during 2021. The average delivery time for the full nine-month period was seven months. This is the time from the receipt of an order until delivery has been made, and thus revenue recognized. The average delivery time depends on several factors and varies between periods.

53.8 MSEK, representing 16 percent of the order backlog for Services, will be recognized as revenue within 12 months, as service contracts are recognized as revenue over the contract period. The service contracts can be up to eight years, while the most common contract period is three to five years.

Order Backlog

Seasonality

There is a seasonal pattern in C-RAD's operations. The second half of the year is usually the strongest period, both in terms of order intake and revenue. This is due to the fact that a large number of customers are hospitals and clinics, which have annual budgets aligned to the calendar year. Delivery capacity and periods of restricted access to hospitals may also bring additional volatility. As the larger part of C-RAD's cost base is fixed, fluctuations in revenue have a direct impact on the quarterly EBIT. Volatility in order intake between quarters and markets is to be expected in C-RAD's business. The gross profit can fluctuate between quarters. The gross profit is dependent on the product mix and the distribution between direct and indirect sales channels in our various markets.

Results

Gross profit

The gross profit margin was 65 (64) percent during the third quarter. For the full nine-month period, the gross profit margin was 64 (64) percent.

Other external expenses

Other external expenses for the quarter amounted to 22.8 (16.6) MSEK, which is in line with previous quarters during the year, and 68.4 (50.1) for the full nine-month period. The increase from last year is driven by different factors. We have an increased activity level in our R&Ddepartment, hence also the increased capitalized development costs. For some customer installations, we have utilized external resources. Within marketing and finance departments, temporary consultancies have been used to cover for vacancies. Last year, the cost level was still impacted by less travelling and less sales activities.

C-RAD has external expenses in foreign currencies, primarily USD and EUR. The first nine months of the year were impacted by currency exchange rate changes with 1.0 MSEK compared to last year, whereas the effect for the third quarter was 0.2 MSEK.

Personnel expenses

Personnel expenses for the quarter amounted to 28.9 (24.3) MSEK, which is in line with previous quarters during the year, and for the full nine-month period 87.6 (69.1). The increase in personnel expenses from last year is explained by the increased average number of employees, including higher variable pay compared to last year. We have replaced consultants in some departments with permanent employees.

C-RAD has personnel expenses in foreign currencies, primarily USD and EUR, and the weakening of the SEK has increased personnel expenses by 2.0 MSEK for the ninemonths period, of which 0.2 MSEK of this in the third quarter.

The average number of employees was 84 during the third quarter 2023, compared with 74 during the corresponding period in 2022. At the end of September 2023, the number of employees in the Group amounted to 84 (79).

Other operating income/expenses

The main composition of other operating income and expenses relates to fluctuations in exchange rates, and thus the revaluation of balance sheet items, as further described in note 2.

Capitalized development costs

Capitalizations during the quarter amounted to 4.3 (2.0) MSEK and are related to the continued development of our products. The increased capitalization compared to last year is due to more time being put into development in comparison with maintenance. During the quarter, costs related to the certification of our products and solutions have been capitalized. In addition, interoperability fees towards some of our customers have been capitalized during the quarter. Amortization of capitalized development costs amounted to 0.9 (0.9) MSEK during the quarter. For the full nine-month period, 10.9 (6.1) MSEK has been capitalized and 2.8 (2.6) MSEK has been amortized.

Total capitalized development costs amounted to 29.2 (17.9) MSEK at the end of the quarter.

EBIT and Net earnings

EBIT for the quarter amounted to 18.9 (14.6) MSEK, corresponding to a margin of 17.0 (17.5) percent. EBIT for the full nine-month period amounted to 32.7 (15.5) MSEK, corresponding to a margin of 11.4 (7.7) percent.

Net earnings amounted to 10.9 (7.1) MSEK for the quarter, corresponding to 0.32 (0.21) SEK per share. For the full nine-months of the year, Net earnings amounted to 19.6 (3.0) MSEK, corresponding to 0.58 (0.09) SEK per share.

The tax expense was 7.9 (7.2) MSEK for the quarter and 12.9 (12.2) MSEK for the full nine-month period. At the end of the quarter the deferred tax receivables were 0.6 (1.3) MSEK.

C-RAD is in process to overseeing our transfer price policy. This is expected to have a positive effect on the company's tax position for the full year 2023, i.e. a positive effect is expected in Q4 2023.

Cash flow and Net financial income

Cash collection continues to be a priority for management and the sales teams as we grow our business.

The strong EBIT and an improvement in the working capital, compared to previous quarters, laid the foundation to the positive cash flow in the quarter. As the revenues are increasing, it is natural that the accounts receivables are increasing as well.

The working capital changed during the quarter with -3.0 (-27.7) MSEK and -53.6 (-44.7) MSEK for the first nine months. The operational cash flow for the quarter amounted to 16.6 (-10.7) MSEK and for the first nine months the operational cash flow was -17.4 (-22.1) MSEK.

Investments also had an impact on cash flow of -5.2 (-2.0) MSEK during the quarter and -11.9 (-6.2) MSEK for the full nine-month period.

The total cash at the end of the period amounted to 89.8 (95.6) MSEK. In addition, the company has an unused credit facility of 20 MSEK.

Net financial income for the quarter amounted to 0.0 (-0.3) MSEK and -0.2 (-0.4) for the full nine-month period. The company has no external debt nor uses factoring, hence the negligible financial expense relating primarily to the use of letters of credit to secure payments from customers.

Other information

Legal disputes

C-RAD is involved in a legal dispute with a former employee.

The background to the dispute is a lawsuit that was filed against C-RAD in May 2020 by the former employee, claiming compensation for an invention made during his employment at C-RAD in 2009. C-RAD rejected the claim for compensation on the basis that the claim was excessive in light of the circumstances and that the employee was already compensated by his salary and other benefits. In July 2021 the Patent and Market Court ruled that no additional compensation should be given. In June 2023, the Patent and Market Court of Appeal did partly change the lower court's ruling and awarded the former employee 4.4 MSEK for the time period until end of 2019, and a 1% royalty on net sales from 2020 up until latest 2029, on products using the invention described in the patent applications US12/632526 or

PCT/SE2010/051338. The previous employee initially requested a royalty of 5%.

The former employee is ordered to partly pay C-RAD's legal costs in both the first and second instance of 1.3 MSEK.

In the verdict, the Patent and Market Court of Appeal granted permission to appeal the decision to the Supreme Court. Both C-RAD as well as the former employee have appealed the decision to the Supreme Court.

All legal expenses for the dispute are recognized as a cost when they arise.

Significant risks and uncertainties

Reference is made to the Annual Report 2022 for significant risks and uncertainties.

Significant events during the third quarter

• C-RAD won an order to IBA (Ion Beam Applications S.A.) for proton SGRT systems in Spain, with an order value of 32 MSEK.
• C-RAD signed an agreement with a customer in North Rhine-Westphalia, Germany of 16 MSEK regarding both products and service contract.
• German customer Katholisches Klinikum Bochum gGmbH – St. Josef Hospital in Bochum, placed an order of 10 MSEK regarding both products and service contract.
• The Breast Solution VitalHold™ on the Radixact® System from Accuray, which includes our technology, is available in the United States and European Union as well as other regions.
• In the legal dispute with a former employee, both C-RAD and the former employee have appealed the decision from the Patent and Market Court of Appeal, to the Supreme Court.

• C-RAD repurchased 88 500 B-shares, to cover C-RAD's obligations under previously resolved incentive program.

Significant events after the quarter

• After the quarter end, C-RAD received an order from another German customer in North Rhine-Westphalia, of 8 MSEK regarding both products and service contract.

Parent company

No operations are conducted in the Parent Company except for Group Management and administration. For the nine-month period, revenues for the Parent Company amounted to 20.9 (21.1) MSEK and the EBIT was -10.8 (5.4) MSEK.

Nomination committee

C-RAD's Nomination Committee, ahead of the 2024 Annual General Meeting, comprises of:

• Anna Frick (appointed by Svea Ekonomi)
• Gaétan Boyer (appointed by Hamberg Förvaltning)
• Lars Nyberg (appointed by Lars Kling)

The Nomination Committee has appointed Anna Frick as Chairperson of the Committee.

The Nomination Committee has the task to, ahead of the 2024 Annual General Meeting, prepare proposals pertaining to the number of Board members, Board fees, the composition of the Board, election of the Chairperson of the Board, election of the Chairperson of the Annual General Meeting, auditors' fees and the election of auditors as well as guidelines for appointing the Nomination Committee.

Proposal to the Nomination Committee can be delivered via email: investors@c-rad.com no later than February 15th 2024.

Annual General Meeting 2024

The Annual General Meeting for C-RAD AB will be held on May 6 th 2024. Time and place to be announced.

Financial calendar

• February 8 th 2024: Year-End report 2023
• May 3rd 2024: Interim report Q1 2024
• July 18th 2024: Interim report Q2 2024
• October 23 rd 2024: Interim report Q3 2024
• February 7th 2025: Year-End report 2024

Shareholders

On September 30, 2023, the largest shareholders were:

Name	Class A-shares	Class B-shares		Total shares Share Capital, %	Votes, %
Svea Bank AB	100 000	3 924 969	4 024 969	11,92%	11,86%
Lars Kling	180 000	2 500 000	2 680 000	7,94%	10,35%
Lars Nyberg med familj	70 000	2 462 930	2 532 930	7,50%	7,62%
Avanza Pension	-	1 811 787	1 811 787	5,37%	4,36%
Nordnet Pensionsförsäkring	-	1 690 011	1 690 011	5,00%	4,07%
Linc AB	-	1 213 107	1 213 107	3,59%	2,92%
Hamberg Förvaltning AB	379 762	822 671	1 202 433	3,56%	11,12%
Margareta Hamberg	-	1 060 722	1 060 722	3,14%	2,55%
Berenberg Funds	-	853 953	853 953	2,53%	2,06%
Eiffel Investment Group SAS	-	811 187	811 187	2,40%	1,95%
Total, 10 largest shareholders	729 762	17 151 337	17 881 099	52,95%	58,87%
Others	133 125	15 752 711	15 885 836	47,05%	41,13%
Total	862 887	32 904 048	33 766 935		100,00% 100,00%

Source: Euroclear

Outlook

We remain confident about our market opportunity and are convinced that C-RAD is in a good position to outgrow the market. C-RAD will continue to improve efficiency in cancer treatments for healthcare providers, better in quality and safer for patients and medical personnel.

We are closely following the current inflation rates and its development and how this could have an impact on our business.

Certification by the CEO

The Chief Executive Officer of C-RAD AB confirms that this report provides a true and fair view of the Group's operations, financial position and earnings, and provides an overview of the significant risks and uncertainties faced by the Parent Company and the Group companies.

If there are any deviations between the reports in English and Swedish, the Swedish version shall prevail.

Uppsala, October 27th 2023

Cecilia de Leeuw CEO

Consolidated income statement in brief

	Q3	Q3	Jan-Sept	Jan-Sept	Full Year
MSEK	2023	2022	2023	2022	2022
Revenues	111,2	83,5	286,2	202,5	301,3
Raw material and consumables	-39,3	-29,7	-102,1	-71,9	-106,1
Gross profit	71,9	53,8	184,0	130,6	195,2
Gross profit margin	65%	64%	64%	64%	65%
Other external expenses	-22,8	-16,6	-68,4	-50,1	-75,8
Personnel expenses	-28,9	-24,3	-87,6	-69,1	-103,3
Capitalized development costs	4,3	2,0	10,9	6,1	10,1
Depreciation	-2,1	-2,5	-6,6	-7,6	-10,1
Other operating income/expenses	-3,5	2,3	0,2	5,7	5,7
Total operating expenses	-53,1	-39,1	-151,4	-115,1	-173,4
Earnings before interest and taxes	18,9	14,6	32,7	15,5	21,8
Financial income	0,1	0,0	0,1	0,0	0,2
Financial costs	-0,1	-0,3	-0,3	-0,4	-0,4
Earnings before taxes	18,9	14,3	32,4	15,2	21,5
Tax	-7,9	-7,2	-12,9	-12,2	-14,0
Net earnings	10,9	7,1	19,6	3,0	7,5
(Attributable to Parent company´s shareholders)
Results per share before dilution	0,32	0,21	0,58	0,09	0,22
Results per share after dilution	0,32	0,21	0,58	0,09	0,22

Consolidated statement of comprehensive income

	Q3	Q3	Jan-Sept	Jan-Sept	Full Year
MSEK	2023	2022	2023	2022	2022
Net income	10,9	7,1	19,6	3,0	7,5
Other comprehensive income
Income/expenses recognized in equity
Exchange differences on translating foreign operations	1,4	2,0	1,6	5,2	3,0
Other comprehensive income of the period (after tax)	12,3	9,1	21,2	8,2	10,4
Total comprehensive income for the period	12,3	9,1	21,2	8,2	10,4
(Attributable to Parent company´s shareholders)

Segment reporting

MSEK	Q3	Q3	Jan-Sept	Jan-Sept	Full Year
Revenue per region	2023	2022	2023	2022	2022
Americas	25,2	20,7	55,2	49,5	70,6
EMEA	54,2	40,1	142,3	100,6	147,5
APAC	31,8	22,7	88,7	52,5	83,3
Total	111,2	83,5	286,2	202,5	301,3
Revenue per category
Products	91,8	70,0	233,1	167,5	252,2
Services	19,4	13,5	53,1	35,1	49,2
Total	111,2	83,5	286,2	202,5	301,3

Segment reporting is based on the same accounting principles as applied in the consolidated financial statements for 2022.

Consolidated balance sheet in brief

MSEK	30-09-2023	30-09-2022	31-12-2022
Non-current assets
Intangible assets	29,4	19,0	21,7
Tangible assets	3,2	3,5	3,1
Right-of-use assets	6,1	7,5	7,0
Deferred tax receivables	0,6	1,3	0,2
Total non-current assets	39,3	31,3	32,0
Current assets
Inventory	53,9	33,5	40,0
Trade receivables	153,0	121,4	105,8
Other receivables	11,5	9,5	9,4
Prepayments and accrued income	34,2	21,5	29,9
Cash and liquid assets	89,8	95,6	121,9
Total current assets	342,4	281,6	307,1
Total assets	381,7	312,9	339,2
Equity and liabilities
Equity	261,5	240,3	242,5
Non-current liabilities
Long-term lease liabilities	3,4	4,5	4,1
Total non-current liabilities	3,4	4,5	4,1
Current liabilities
Accounts payable	40,1	18,9	31,0
Warranty provisions	3,0	3,0	3,0
Other current liabilities	27,5	11,2	18,6
Accrued expenses and deferred income	46,1	34,9	39,9
Total current liabilities	116,8	68,0	92,5
Total equity and liabilities	381,7	312,9	339,2

Consolidated cash flow statement in brief

	Q3	Q3	Jan-Sept	Jan-Sept	Full Year
MSEK	2023	2022	2023	2022	2022
Earnings before interest and taxes	18,9	14,6	32,7	15,5	21,8
Adjustment for non-cash items	2,4	2,5	6,6	7,4	9,9
Interests received	0,1	0,0	0,1	0,0	0,0
Interest paid	-0,1	-0,2	-0,3	-0,3	-0,2
Tax paid	-1,7	0,0	-2,8	0,0	0,0
	19,6	16,9	36,2	22,6	31,5
Changes in working capital, whereof	-3,0	-27,7	-53,6	-44,7	-21,8
Change in inventory	-4,7	-3,9	-13,9	-16,3	-22,8
Change in operating receivables	-18,3	-19,6	-53,4	-27,8	-20,8
Change in operating payables	20,0	-4,2	13,7	-0,6	21,8
Cash flow from operating activities	16,6	-10,7	-17,4	-22,1	9,8
Investments	-5,2	-2,0	-11,9	-6,2	-11,2
Cash flow from investing activities	-5,2	-2,0	-11,9	-6,2	-11,2
Premiums received for warrants	0,0	0,0	0,5	1,0	1,0
Repurchase of own shares	-2,7	0,0	-2,7	0,0	0,0
Amortization of lease liabilities	-0,8	-0,9	-2,6	-2,5	-3,4
Cash flow from financing activities	-3,5	-0,9	-4,8	-1,5	-2,4
Net increase (decrease) in cash and cash equivalents	7,9	-13,7	-34,1	-29,8	-4,0
Cash and liquid assets at beginning of period	82,6	108,3	121,9	122,4	122,4
Exchange rate differences	-0,7	0,9	2,0	3,0	3,5
Cash and liquid assets at end of period	89,8	95,6	89,8	95,5	121,9

Change in group equity

	Q3	Q3	Jan-Sept	Jan-Sept	Full Year
MSEK	2023	2022	2023	2022	2022
Opening balance	251,9	231,2	242,5	231,1	231,1
Warrants program	0,0	0,0	0,5	1,0	1,0
Repurchase of shares	-2,7	0,0	-2,7	0,0	0,0
Changes in the period	-2,7	0,0	-2,2	1,0	1,0
Total comprehensive income for the period	12,3	9,1	21,2	8,2	10,4
Closing balance at end of period	261,5	240,3	261,5	240,3	242,5

Parent Company income statement in brief

	Jan -Sep	Jan -Sep	Full Year
MSEK	2023	2022	2022
Revenues	20,9	21,1	28,9
Operating expenses	-31,7	-15,7	-29,7
Earnings before interest and taxes	-10,8	5,4	-0,8
Financial items	-4,6	0,0	21,3
Earnings before taxes	-15,5	5,4	20,5
Tax	0,0	-1,2	-4,2
Net earnings	-15,5	4,2	16,3

Parent Company balance sheet in brief

MSEK	30-09-2023	30-09-2022	31-12-2022
Intangible assets	0,0	0,4	0,1
Tangible assets	0,2	0,3	0,3
Financial assets	231,9	185,9	205,4
Deferred tax asset	0,0	3,1	0,0
Total non-current assets	232,1	189,7	205,9
Current receivables	11,0	3,5	4,9
Cash and liquid assets	12,9	58,3	59,2
Total assets	255,9	251,5	270,0
Equity and liabilities
Equity	241,6	247,3	259,4
Total current liabilities	14,3	4,2	10,6
Total equity and liabilities	255,9	251,5	270,0

Group summary per quarter

Income Statement

	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
MSEK	2023	2023	2023	2022	2022	2022	2022	2021	2021	2021	2021
Revenues	111,2	90,6	84,4	98,8	83,5	62,7	56,3	77,4	63,2	60,5	60,0
Cost of Sale	-39,3	-33,5	-29,4	-34,2	-29,7	-22,0	-20,2	-26,5	-22,9	-22,6	-23,5
Gross Profit	71,9	57,1	55,0	64,6	53,8	40,7	36,2	50,9	40,3	37,9	36,6
Gross margin	65%	63%	65%	65%	64%	65%	64%	66%	64%	63%	61%
Other external expenses	-22,8	-24,3	-21,3	-25,6	-16,6	-18,6	-14,9	-14,5	-12,4	-12,7	-12,8
Personnel expenses	-28,9	-28,2	-30,4	-34,2	-24,3	-23,6	-21,2	-20,1	-18,0	-17,6	-16,0
Capitalized development costs	4,3	2,6	4,0	4,0	2,0	2,4	1,7	1,1	1,1	1,2	1,1
Depreciation	-2,1	-2,2	-2,3	-2,5	-2,5	-2,5	-2,6	-2,5	-2,5	-2,4	-2,4
Other operating income/expenses	-3,5	2,5	1,3	0,0	2,3	2,4	1,0	0,1	0,3	-0,5	-0,2
Operating expenses	-53,1	-49,7	-48,7	-58,4	-39,2	-39,9	-36,0	-35,9	-31,5	-31,9	-30,3
Earnings before interest and taxes	18,9	7,4	6,4	6,2	14,6	0,8	0,2	14,9	8,8	6,0	6,2
Financial items. net	0,0	-0,2	0,0	-0,2	-0,3	0,0	-0,1	-0,1	-0,1	0,0	-0,1
Earnings before taxes	18,9	7,3	6,3	6,0	14,3	0,8	0,1	14,9	8,7	6,0	6,2
Tax	-7,9	-1,8	-3,1	-1,8	-7,2	-3,7	-1,3	-3,5	-3,8	-0,4	-3,0
Net earnings	10,9	5,4	3,2	4,2	7,1	-2,9	-1,2	11,4	4,9	5,6	3,2

(Attributable to Parent Company´s shareholders)

Balance Sheet

	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
MSEK	2023	2023	2023	2022	2022	2022	2022	2021	2021	2021	2021
Non-current assets	39,3	33,1	33,2	32,0	31,3	37,7	41,0	42,6	47,5	50,3	50,9
Current assets	342,4	313,4	304,0	307,1	281,6	270,7	260,5	264,1	238,0	228,2	221,2
Total assets	381,7	346,5	337,1	339,2	312,9	308,4	301,5	306,7	285,4	278,5	272,1
Equity	261,5	251,9	245,9	242,5	240,3	231,2	230,6	231,1	219,6	213,8	208,4
Non-current liabilities	3,4	2,4	3,2	4,1	4,5	5,3	6,0	6,4	7,1	7,3	7,0
Current liabilities	116,8	92,3	88,1	92,6	68,0	71,8	64,9	69,2	58,8	57,3	56,7
Total equity and liabilities	381,7	346,5	337,1	339,2	312,9	308,4	301,5	306,7	285,4	278,5	272,1

Cash Flow Statement

	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
MSEK	2023	2023	2023	2022	2022	2022	2022	2021	2021	2021	2021
Operating cashflow	16,6	-22,0	-11,9	31,8	-10,7	-6,4	-4,9	13,1	-0,5	4,3	1,3
Cashflow from investing activities	-5,2	-2,7	-4,0	-5,0	-2,0	-2,5	-1,7	-1,2	-2,2	-1,2	-1,2
Cashflow from financing activities	-3,5	-0,4	-0,9	-0,9	-0,9	0,2	-0,8	-0,8	-0,8	-0,3	3,0
Total cash flow	7,9	-25,1	-16,9	25,9	-13,7	-8,7	-7,4	11,1	-3,5	2,7	3,1

Key Ratios

	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
MSEK	2023	2023	2023	2022	2022	2022	2022	2021	2021	2021	2021
Total order intake (MSEK)	168,6	117,8	91,4	216,6	80,9	105,6	81,5	132,9	82,1	72,3	66,3
Quarterly change (%)	43%	29%	-58%	168%	-23%	30%	-39%	62%	14%	9%	-46%
Change compared to same period last year (%)	108%	12%	12%	63%	-1%	46%	23%	9%	2%	16%	39%
Total Revenues (MSEK)	111,2	90,6	84,4	98,8	83,5	62,7	56,3	77,4	63,2	60,5	60,0
Quarterly change (%)	23%	7%	-15%	18%	33%	11%	-27%	23%	4%	1%	-19%
Change compared to same period last year (%)	33%	44%	50%	34%	32%	4%	-6%	4%	20%	41%	16%
Gross Margin (percent of Revenues)	65%	63%	65%	65%	64%	65%	64%	66%	64%	63%	61%
EBIT-margin (percent of Revenues)	17%	8%	8%	6%	18%	1%	0%	19,3%	14%	10%	10%
Profit margin (percent of Revenues)	10%	6%	4%	4%	9%	-5%	-2%	15%	8%	9%	5%
Earnings per share before dilution (SEK)	0,32	0,16	0,10	0,12	0,21	-0,09	-0,04	0,34	0,15	0,17	0,09
Equity per share before dilution (SEK)	7,74	7,46	7,28	7,18	7,12	6,85	6,83	6,85	6,51	6,34	6,17
Equity per share after dilution (SEK)	7,74	7,46	7,28	7,18	7,12	6,85	6,79	6,84	6,50	6,33	6,17
Equity/asset ratio (%)	69%	73%	73%	72%	77%	75%	76%	75%	77%	77%	77%
Cash Balance (MSEK)	89,8	82,6	105,2	121,9	95,6	108,3	115,5	122,4	111,0	114,1	111,6
Number of employees at end of period	84	83	80	79	79	70	70	66	65	64	57
Average number of outstanding shares (millions)	33,8	33,8	33,8	33,8	33,8	33,8	33,8	33,7	33,7	33,7	33,7
Average number of diluted shares (millions) Number of outstanding shares at end of period	33,8	33,8	33,8	33,8	33,8	33,8	33,9	33,8	33,8	33,8	33,8
(millions) Number of outstanding warrants at end of period	33,8	33,8	33,8	33,8	33,8	33,8	33,8	33,8	33,8	33,8	33,8
(millions)	0,2	0,2	0,2	0,2	0,2	0,2	0,2	0,2	0,2	0,2	0,2

Notes

Note 1.Accounting principles

This interim report is prepared, for the Group, in accordance with IAS 34, RFR1 "Redovisning för koncerner" and the Swedish Annual Accounts Act and, for the Parent company, the Swedish Annual Accounts Act and RFR 2. The accounting principles applied are consistent with what is stated in Note 1 in the Annual Financial Statements for 2022.

Note 2.Exchange rates

The financial statements are presented in SEK, the functional currency of C-RAD. Sales and orders are largely generated in foreign currency, mainly EUR and USD and, in addition, foreign subsidiaries and associates are included in the consolidation. Orders, order backlog and income statement are translated at the period January to September average exchange rate while balance sheet items are translated at the closing rate. The average EUR rate during January to September was 11.48 (10.53), while the average USD rate for the period was 10.59 (9.92). Closing rate for EUR was 11.49 (10.92) and USD 10.84 (11.12).

Note 3.Related party transactions

During the third quarter, C-RAD has paid 5 000 SEK in service fees to Ropa & Boarda AB. The owner of Ropa & Boarda AB is C-RAD Board member Jenny Rosberg.

Note 4.Capitalized Development Costs

Development expenses that fulfil the recognition criteria in IAS 38 are capitalized. Impairment tests are performed yearly. The progress of current development projects is reviewed on a regular basis.

Note 5.Deferred tax

Deferred tax assets are reviewed at the end of each reporting period and adjusted in line with the probable future taxable result.

Note 6.Contingent liabilities

Contingent liability at the Parent Company C-RAD AB for a general unlimited guarantee commitment to C-RAD Positioning AB and C-RAD Imaging AB.

Note 7.Pledges

Pledges refer to a chattel mortgage for the company's credit line with Nordea (security of SEK 20,000,000).

Note 8.Alternative performance measures (APMs)

C-RAD AB presents certain financial measures in the interim report that are not defined in IFRS. It is C-RAD's opinion that these measures provide valuable supplementary information to investors and company management as they facilitate the evaluation of the company's performance. These measures shall not be considered a replacement for any financial measure as defined by IFRS.

Order intake

Order intake consists of the value of orders received in the reported periods.

Order backlog

Order backlog is the value of orders at the end of the reporting period, which the company has yet to deliver and recognize as revenue. The company reports on the order backlog both for products and services.

Gross profit and gross margin

Gross profit is the difference between net sales and cost of products sold and is presented on a separate line in the income statement. Gross profit as a percentage of net sales represents gross margin. The gross margin is used by management to review effects on the income statement from factors such as product mix and price development.

EBIT and EBIT (%)

This measure is presented in the income statement as C-RAD considers it to provide users of the financial statements with a better understanding of the Group's operating performance from a financial perspective. The EBIT (%) shows the earnings before interest and taxes as a percentage of net sales.

The information in this report is such that C-RAD is obliged to publish under the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, on October 27, 2023 at 8:30 am.

Presentation of the Interim Report

CEO Cecilia de Leeuw and CFO Christoffer Herou will present the interim report for the third quarter by webcast on Friday, October 27 at 11:00 CET. After the presentation, there will be time for questions. The presentation will be held in English. To participate in the presentation, please register using the link below:

https://us06web.zoom.us/webinar/register/WN\_QEq6Uv1PRZClL6yC9MJBvg

For more information:

Cecilia de Leeuw, CEO, +46 (0)795 85 66 77, investors@c-rad.com Christoffer Herou, CFO, +46 (0)725 82 86 16, investors@c-rad.com

C-RAD in brief

C-RAD is a research and development company in the field of medical technology whose hardware and software ensure exceptional precision, safety and efficacy in advanced radiation therapy. The company has sales and support operations in the USA, Europe, China and Australia. C-RAD AB has been listed on Nasdaq Stockholm Small Cap since 2014.

C-RAD's mission is to be the preferred partner for ensuring safety and efficacy within advanced radiation oncology and so help to cure more cancer patients and improve their quality of life.

C-RAD AB (publ)

Sjukhusvägen 12 K, SE-753 09 Uppsala, Sweden Telephone +46 (0)18 - 66 69 30 www.c-rad.com Corp. reg. no 556663-9174