Bactiguard Holding

Earnings Release • Apr 27, 2023

Continued focus on growth and transformation

First Quarter 2023, January-March

• Revenues amounted to SEK 61.2 (55.2) million, an increase of 11%. Adjusted for currency effects, revenues decreased by 4%.
• Operating loss amounted to SEK 18.7 (16.6) million, an increase of SEK 2.1 million.
• EBITDA amounted to SEK -6.6 (-4.0) million, with an EBITDA margin of -10.8% (-7.2%).
• Net loss for the period amounted to SEK 22.1 (16.5) million.
• Loss per share¹ , before and after dilution, amounted to SEK 0.63 (0.47).
• Cash flow from operating activities amounted to SEK -7.7 (-11.9) million, corresponding to SEK -0.22 (-0.34) per share.

In January, the first MDR (Medical Device Regulations 2017/745) product approval was announced, following a comprehensive authorization process. The MDR approval relates to the latex BIP Foley Catheter which is an indwelling urinary catheter with Bactiguard's unique infection prevention technology.

Bactiguard Wound Care was launched in UK and Ireland.

Key events during the quarter Key events after the end of the quarter

Zimmer Biomet received ZNN Bactiguard regulatory approval in Japan.

Mikael Sander was appointed Head of Bactiguard Product Portfolio BPP, joins Bactiguard's management team.

Key figures	2023	2022	2022	2023
	Jan-Mar	Jan-Mar	Full year	RTM
Revenues1 , SEKm	61.2	55.2	253.5	259.5
Operating profit2 , SEKm	-18.7	-16.6	-55.7	-55.1
EBITDA2 , SEKm	-6.6	-4.0	-6.4	-9.0
EBITDA margin2 , %	-10.8%	-7.2%	-2.5%	-3.5%
Net profit/loss for the period1 , SEKm	-22.1	-16.5	-52.9	-58.5
Earnings per share1 , SEK	-0.63	-0.47	-1.51	-1.67
Operating cash flow 1 , SEKm	-7.7	-11.9	3.1	7.3
Operating cash flow per share2 , SEK	-0.22	-0.34	0.09	0.21
Equity ratio2 , %	60.2%	62.6%	61.4%	60.2%
Net debt2 , SEKm	55.4	42.9	41.0	55.4

1 Defined according to IFRS.

2 Alternative performance measure. For definition and reconciliation, see pages 17-18.

CEO Statement

Continued focus on growth and transformation

Following an eventful 2022, revenues for the first quarter 2023 came in at SEK 61 million, an increase of 11 percent compared to Q1 2022 (-4 percent when adjusted for currency effects). EBITDA for the quarter amounted to SEK -6.6 million (Q1 2022: SEK - 4.0 million). Even with continued investments in organizational enhancements, indirect costs remained relatively flat at SEK -50 million compared to Q4 2022.

Positive progress within licensing

We continue our efforts to further strengthen the license business, where the biggest potential for Bactiguard lies, and our strategic focus on new license partners and deepened collaborations is a crucial part of diversifying the long-term license revenue base and ultimately, reach more patients - the pipeline of potential license partnerships is strong and the goal to sign 1-2 more license partners per year stays firm.

License revenues were stable and in line with Q1 2022. For five consecutive quarters, including Q1 2023, revenues from our largest license partner BD (Becton Dickinson) have been very strong. However, we anticipate an adjustment over the coming quarters as they have now built up a significant stock in-house. The trauma collaboration with Zimmer Biomet is progressing well and according to plan. The ZNN Bactiguard's regulatory approval in Japan was an important milestone being a first step towards commercial launch in a market where preventing infections is a high priority.

The Zimmer Biomet development project on their broader orthopaedics portfolio progresses well and according to plan and is an excellent example of how a successful collaboration and partnership, in this case within trauma orthopaedics, leads to a further expansion of our infection prevention technology. The development project with Dentsply Sirona is also progressing but the initial development phase will, however, take longer than estimated at the announcement in 2022. In Q1, the license revenues from the new development projects in broader orthopaedics and dental were related to development work. It is important to note that royalty revenues are generated once the projects advance into formal license agreements and products are commercially launched.

In January, we received our first MDR product approval. This is not only an important product approval, but it also signifies that Bactiguard's Quality Management System fully complies with the rigorous standards set forth by the MDR. This is a competitive advantage for us, both in licensing and for future BIP product regulatory approvals.

Bactiguard launches Wound Care in the UK and Ireland

The aggregated BPP revenues increased by 6 percent in Q1 which is modest but we are confident that sales will pick up once the reorganized sales team structure settles. The investments made in the Nordics and India continue to pay off with yet another strong quarter.

Bactiguard Wound Care extended their market reach by entering the UK and Ireland in Q1. A publication in the Wounds Asia journal confirmed enhanced wound healing when using Bactiguard's Wound Care products which reinforces that Bactiguard's purpose of preventing infections is relevant across our entire offering.

Transformation journey continues

Bactiguard's transformation continues and to strengthen BPP and License, Mikael Sander has been appointed Head of Bactiguard Product Portfolio. Mikael will focus on BPP operational excellence and be a senior resource in the License team. He brings vast experience from over 30 years within the global medtech industry and joins Bactiguard's Management Team. With the investments made in our Technology Development team last year, now under the leadership of Chief Technology Officer Sathish Subramaniam, we are even better equipped to further develop how we can apply Bactiguard's coating to new medical devices and new materials.

Outlook

A key focus in 2023 is to further develop the US go-to-market strategy for Bactiguard's technology. We are investigating potential avenues, whether it be through forging collaborations with current and future license partners or with distribution partners. We will also continue our efforts to gain FDA approvals for products with Bactiguard's infection prevention coating, including our own portfolio (for example central venous catheters and endotracheal tubes). All this combined are both key drivers and prerequisites for achieving Bactiguard's future growth and profitability.

With the organizational investments made in 2022, we are confident in our strategy and about seizing the opportunities behind the global healthcare trends within our strategic therapeutic areas which in total has a market size of around USD 80 billion.

Anders Göransson, CEO

Business model

Bactiguard's vision is to prevent infections, increase patient safety and save lives. The basis for our business model is a unique technology for infection prevention, which we offer to other manufacturers of medical devices through licensing agreements. We also offer our own product portfolio of catheters with Bactiguard's coating technology and wound care products.

License revenues

Bactiguard licenses the patented coating technology to medical technology global companies that apply it to their products and sell them under their own brand. License revenues include upfront fees related to the right to use Bactiguard's coating technology for products in a specific application-and geographical area. Licensees gain access to Bactiguard's process know-how, while the coating – the concentrate of noble metals – is a trade secret. License revenues also include royalties, i.e., a variable remuneration when the products reach the market and generate sales revenue, and revenues related to contract manufacturing. "New license" revenues include upfront license fees as well as remuneration linked to milestones and product development.

License partner	Applications area	Geography**
Becton Dickinson and Company (BD, former C.R. Bard)	Urinary catheter (Foley)	US, Japan, UK, Ireland, Canada and Australia
Zimmer Biomet	Trauma implants	Global excluding South-East Asia, China, India and South Korea
Zimmer Biomet	Orthopedic implants	Global excluding South-East Asia, China, India and South Korea
Dentsply Sirona*	Part of Dental	Global
Well Lead Medical	Urinary catheters, ETT and CVC	China
Smartwise Sweden AB	Advanced vascular injection catheters	Global

* Development agreement with option on license agreements. Black: products in the market

Bactiguard product Portfolio (BPP) (former BIP)

Bactiguard has a broad portfolio of products that protect against and prevent infections. The portfolio includes the Bactiguard infection protection products for the urinary, blood and respiratory tracts as well as our Bactiguard Wound Care product line with wound wash, Gel and dressings, as well as Sutures.

Development in the first quarter

Revenue

MSEK	2023	2022	2022	2023
	Jan-Mar	Jan-Mar	Full year	RTM
License revenues	37.7	33.6	139.4	143.4
New license revenues	1.7	2.8	22.0	20.8
Sales of BIP products	16.3	15.4	62.2	63.0
Net sales	55.6	51.8	223.6	227.4
Other revenues	5.5	3.4	29.9	32.0
Total revenues	61.2	55.2	253.5	259.5

Total revenue for the first quarter amounted to SEK 61.2 (55.2) million, an increase of SEK 6.0 million, or 11 percent. Adjusted for the positive currency effect of SEK 8.4 million, revenue decreased with 4 percent. Net sales amounted to SEK 55.6 (51.8) million, corresponding to an increase of 7 percent. Adjusted for the positive currency effect of SEK 4.8 million, net sales decreased by 2 percent.

License revenue amounted to SEK 37.7 (33.6) million, an increase of 12 percent. After taking the positive currency effects into account the growth corresponded to 1 percent. License revenue from BD amounted to SEK 36.3 (31.2) million, which is an increase of 16 percent compared with the same period during the previous year, corresponding to an increase of 5 percent after positive currency effects of SEK 3.6 million. Other license revenue is attributable to our contract manufacturing of ZNN Bactiguard on behalf of Zimmer Biomet for the EMEA market, and a small but growing share of royalties for the same product, which consists of a percentage of Zimmer Biomet's sale price, where Bactiguard receives a certain amount in connection with manufacturing and when the products reach the market.

New License revenue in the first quarter amounted to SEK 1.7 (2.8) million. The revenue is primarily related to project revenue for the new agreement signed with Zimmer Biomet in the first quarter of 2022, as well as development revenue for the collaboration with Dentsply Sirona. Both projects are proceeding well, but Dentsply will take longer than expected.

BPP sales for the first quarter amounted to SEK 16.3 (15.4) million, an increase of SEK 0.9 million, corresponding to an increase of 6 percent. Adjusted for currency effects of SEK 0.9 million, sales were in line with last year. Sales of catheters in the Nordics and India show continued strong growth, but wound care products in Malaysia decreased.

Other revenue amounted to SEK 5.5 (3.4) million, of which SEK 3.6 (2.0) million pertained to currency effects.

Result

EBITDA for the first quarter amounted to SEK -6.6 (-4.0) million, corresponding to an EBITDA-margin of -10.8 percent (-7.2).

Costs for raw materials and consumables for the first quarter amounted to SEK -14.1 (-9.4) million. Other external costs amounted to SEK -23.1 (-22.9) million. An increase of SEK 0.2 million, corresponding to a cost increase of 1 percent related primarily to higher costs for consultants and temporary staff attributable to regulatory work. Staff costs amounted to SEK -26.9 (-22.2) million. An increase of SEK 4.7 million, corresponding to a cost increase of 21 percent in line with our strategic priorities involving, for example, regulatory initiatives (MDR/FDA) and development projects. Other operating expenses are related to currency exchange losses, which amounted to SEK -3.7 (-5.2) million.

The operating loss amounted to SEK -18.7 (-16.6) million. Depreciation impacted operating loss by SEK -12.1 (-12.6) million. Amortization of intangible assets amounted to SEK -8.3 (-8.9) million, attributable primarily to amortization of

SEK -6.4 (-6.4) million relating to Bactiguard's technology. Depreciation of fixed assets amounted to SEK -3.8 (-3.6) million, primarily attributable to depreciation on leasing of SEK -2.8 (-2.7) million.

Financial items amounted to SEK -3.7 (-2.4) million, where SEK -2.9 (-1.9) million pertained to interest expenses and the remaining amount of SEK -0.8 (-0.5) million pertained to other financial expenses.

Tax for the period amounted to SEK 0.3 (2.5) million, of which a change in deferred tax amounted to SEK 0.1 (2.8) million attributable to the Group's intangible assets and leases, which is calculated at the Swedish tax rate of 20.6 percent. Income tax in foreign subsidiaries is calculated on the basis of a tax rate of 24.0 percent.

Net loss for the first quarter of 2023 amounted to SEK -22.1 (-16.5) million.

Revenues development, rolling twelve months

The chart shows how revenues in each type of revenue stream have developed over a rolling twelve-month period per quarter.

Operating profit/loss, rolling twelve months

The diagram shows how the result has developed during a rolling twelve-month period per quarter.

The positive development of EBITDA in 2019 and the beginning of 2020, was an effect of good revenue development attributable to new license agreements, growth in BPP sales and the acquisition of Vigilenz. During the pandemic, earnings developed was negatively impacted as regular healthcare activities decreased in favour of Covid-19 efforts, which also affected the focus and prioritization of potential license partners.

In 2022 Bactiguard had a strong revenue growth while investments in business development, regulatory expertise and delivery capacity increased in accordance with the focused growth strategy presented in the first quarter of 2022. This had a negative impact on earnings for 2022, however, the revenue increase continues, but the investments that are made in the organization, primarily in license and coating development, very focused on the US, imply that profitability has not yet been reached.

Financial targets

Sales growth

Annual revenues of at least SEK 1 000 million.

Profitability

Annual EBITDA of at least SEK 400 million.

This is expected to be achieved through significant capacity building within our licensing business, combined with investments in BPP. Furthermore, we will invest in manufacturing, product development and continued efforts to improve our sales and marketing organization. The transformation of Bactiguard will affect profitability over the coming 12-24 months, however we expect accelerating profitability in the years 2024 to 2026.

Cashflow

Cash flow from operating activities for the first quarter amounted to SEK -7.7 (-11.9) million. Cash flow from changes in working capital was SEK 4.9 (1.9) million for the quarter mainly related to lowered account receivables of SEK 7 million. Cash flow from investing activities amounted to SEK -1.2 (-0.9) million for the quarter. Cash flow from financing activities for the quarter amounted to SEK -3.0 (-2.8) million, maily related to amortisation of lease. Cash flow for the quarter amounted to SEK -11.8 (-15.6) million. Cash and cash equivalents at the end of the period amounted to SEK 186.6 (202.3) million.

Financial position

Equity on 31 March 2023 amounted to SEK 473 (526) million and net debt to SEK 55 (43) million.

The parent company has a credit facility with SEB with a term until December 2024. The total outstanding amount on 31 March 2023 amounted to SEK 171 (171) million. As of 31 March 2023, the overdraft facility from SEB of SEK 30 million was unutilized. Foreign subsidiaries have credit facilities amounting to SEK 9.4 (9.7) million as of 31 March. Total assets in the Group amounted to SEK 786 (841) million on 31 March 2023.

Other information

The share and share capital

Bactiguard's B share is listed on Nasdaq Stockholm with the shortname "BACTI". The closing price paid for the B share was SEK 74.0 (104.0) on 31 March 2023 and the market capitalization amounted to SEK 2 593 (3 645) million.

The share capital in Bactiguard on 31 March 2023 amounted to SEK 0.9 (0.9) million divided into 31 043 885 Class B shares with one vote each (31 043 885 votes) and 4 000 000 Class A shares with ten votes each (40 000 000 votes). The total number of shares and votes in Bactiguard on 31 March 2023 was 35 043 885 shares and 71 043 885 votes.

Shareholders	No. of A shares	No. of B shares	Total number	% of capital	% of votes
Thomas Von Koch and company*	2 000 000	4 604 182	6 604 182	18,9	34,6
Christian Kinch med familj och bolag	2 000 000	4 179 426	6 179 426	17,6	34,0
Jan Ståhlberg		3 605 150	3 605 150	10,3	5,1
Nordea Investment Funds		3 419 987	3 419 987	9,8	4,8
Fjärde AP-fonden		3 370 992	3 370 992	9,6	4,8
Handelsbanken Fonder		1 934 308	1 934 308	5,5	2,7
AMF - försäkring och fonder		1 697 340	1 697 340	4,8	2,4
Avanza Pension		1 044 875	1 044 875	3,0	1,5
SEB Life International Assurance (varav 758 140 avser kapitalförsäkring för bolag kontrollerat av Thomas von Koch)		834 040	834 040	2,4	1,2
UBS AG London Branch, W8IMY		829 056	829 056	2,4	1,2
Total, major shareholders	4 000 000	25 519 356	29 519 356	84,4	92,3
Total, others		5 524 529	5 524 529	15,7	7,7
Total number of shares	4 000 000	31 043 885	35 043 885	100,0	100,0

Ownership

* Part of Thomas von Kochs holdings can be found in SEB Life, see table above, note these do not have voting rights.

Per 31 Mars 2023 Bactiguard had 3 585 (3 595) shareholders.

Employees

Full-time positions in the Group during the period January - March counted to 214 (211) FTE of which 135 (124) were women. As of the end of March, the number of full-time employed individuals was 217.

Key events during the quarter

In January 2023 the first MDR (Medical Device Regulations 2017/745) product approval was announced, following a comprehensive authorization process. The MDR approval relates to the latex BIP Foley Catheter which is an indwelling urinary catheter with Bactiguard's unique infection prevention technology.

Bactiguard Wound Care was launched in UK and Ireland.

Key events after the end of the quarter

Zimmer Biomet received ZNN Bactiguard regulatory approval in Japan.

Mikael Sander assumed the role as Head of Bactiguard Product Portfolio BPP and joined Bactiguard's management team.

Accounting and valuation principles

The consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS). The interim report has been prepared in accordance with IAS 34 Interim Reporting and the Annual Accounts Act. Disclosures in accordance with IAS 34 Interim Reporting are submitted both in notes and elsewhere in the interim report. The parent company's financial statements have been prepared in accordance with the Annual Accounts Act and the Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities.

Accounting and valuation principles are stated in the annual report for 2022. The accounting principles are unchanged from previous periods.

Segment reporting

An operating segment is a component of an entity that engages in business activities from which it may derive revenues and incur expenses, whose operating results are regularly reviewed by the Chief Operating decision maker and for which there is separate financial information. The company's reporting of operating segments is consistent with the internal reporting provided to the Chief Operating decision maker. The Chief Operating decision maker is the function that assesses the operating segment performance and decides how to allocate resources. The company has determined that the Group's executive management constitutes the Chief Operating decision maker. The company is considered in its entirety to operate within one business segment.

Parent company

During the period, the parent company received interest on its receivables from group companies. No investments were made during the period.

Risk factors

Companies within the Group are exposed to various types of risk through their activities. The company continually engages in a process of identifying all risks that may arise and assessing how each of these risks shall be managed. The Group is working to create an overall risk management program that focuses on minimizing potential adverse effects on

the company's financial results. The company is primarily exposed to market related risks, operational risks and financial risks. A description of these risks can be found on page 52–53 and 66–68 in the Annual Report for 2022.

Impact of macro events on the company - The geopolitical situation and macro trends

We still expect minor disruptions also in 2023 due to the pandemic and its effect on global supply. Bactiguard does not have suppliers or sales to either Russia, Belarus, or Ukraine. However, the Global economy is affected by the situation of the war, and we follow developments closely and continuously evaluate the operational and financial effects as the Global situation may change and affect the company's financial position.

The Global economy and the supply situation in the world are affected by the pandemic and Russia's invasion of Ukraine, with increased inflation and higher prices for electricity and higher interest rates as a result. The company does not always have the opportunity to change the price towards the customer, which can have a negative impact on the financial position. Increased interest rates will also affect the company's interest costs negatively. The company also has a large exposure to the USD and other currencies, see the annual report for 2022.

Group consolidated income statement

Amounts in TSEK		2023	2022	2022	2023
		Jan-Mar	Jan-Mar	Full year	RTM
Revenues	Note 1
License revenues		39 384	36 405	161 403	164 382
Sales of BIP products		16 265	15 373	62 157	63 049
Other revenues		5 511	3 424	29 935	32 022
Total revenues		61 159	55 202	253 495	259 452
Change in inventory of finished goods		-	436	3 890	3 454
Capitalized expenses for ow n account		-	90	540	450
Raw materials and consumables		-14 146	-9 449	-47 846	-52 543
Other external expenses		-23 053	-22 853	-83 232	-80 732
Personnel costs		-26 858	-22 211	-105 060	-109 707
Depreciation and amortisation		-12 090	-12 567	-49 240	-48 762
Other operating expenses		-3 719	-5 216	-28 214	-26 717
Sum		-79 866	-71 771	-309 162	-314 556
Operating profit/loss		-18 707	-16 569	-55 667	-55 104
Profit/loss from financial items
Financial income		1 945	2 214	12 716	7 908
		-5 634	-4 615	-16 904	-13 385
Financial expenses Sum		-3 690	-2 401	-4 188	-5 477
Profit before tax		-22 396	-18 971	-59 855	-63 280
Taxes for the period		297	2 493	6 978	4 782
NET PROFIT/LOSS FOR THE PERIOD		-22 099	-16 477	-52 876	-58 498
Attributable to:
The parent company´s shareholders		-22 099	-16 477	-52 876	-58 498
Earnings per share, SEK before and after		-0.63	-0.47	-1.51	-1.67
dilution

Condensed statement of comprehensive income

Amounts in TSEK	2023 Jan-Mar	2022 Jan-Mar	2022 Full year	2023 RTM
Net profit/loss for the period	-22 099	-16 477	-52 876	-58 498
Other comprehensive income: Items that w ill not be reclassified to profit or loss for the year	-	-	-	-
Items that will be reclassified to profit or loss for the year:
Translation differences	-386	1 101	7 135	5 648
Other comprehensive income, after tax	-386	1 101	7 135	5 648
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	-22 485	-15 376	-45 741	-52 850
Attributable to: The parent company´s shareholders	-22 485	-15 376	-45 741	-52 850
Number of shares at the end of period ('000) Weighted average number of shares ('000)	35 044 35 044	35 044 35 044	35 044 35 044	35 044 35 044

Group condensed statement of financial position

Amounts in TSEK	2023-03-31	2022-03-31	2022-12-31
ASSETS
Non-current assets
Goodw ill	250 254	248 210	250 466
Technology	92 487	117 893	98 838
Brands	25 840	26 574	25 875
Customer relationships	6 211	7 599	6 558
Capitalised development expenditure	12 091	17 974	13 568
Patents	1 303	1 036	1 315
Intangible assets	388 186	419 286	396 620
Leased assets	58 780	62 765	55 480
Buildings	14 937	14 370	15 097
Improvements, leasehold	5 718	6 461	5 732
Machinery and other technical plant	17 749	13 505	18 027
Equipment, tools and installations	5 604	3 550	5 293
Property, plant and equipment	102 788	100 650	99 629
Long-term receivables	3 200	1 813	3 095
Financial assets	3 200	1 813	3 095
Total non-current assets	494 174	521 748	499 344
Current assets
Inventory	43 045	38 406	44 367
Accounts receivable	39 970	57 310	47 126
Other current receivables Note 2	8 479	8 170	7 285
Prepaid expenses and accrued income	13 206	12 817	11 854
Cash and cash equivalents	186 648	202 305	197 727
Total current assets	291 348	319 008	308 359
TOTAL ASSETS	785 522	840 756	807 704
EQUITY AND LIABILITIES
Equity attributable to shareholders of the parent
Share capital	876	876	876
Other equity	472 348	525 198	494 832
Total equity	473 224	526 074	495 709
Non-current liabilities
Deferred tax liability	-	4 829	-
Liabilities to credit institutions	179 220	178 751	179 265
Liabilities leasing agreements	50 629	56 149	48 519
Total non-current liabilities	229 849	239 729	227 785
Current liabilities
Accounts payable	30 491	28 334	33 821
Liabilities leasing agreements Other current liabilities Note 2	12 155	10 263	10 915
Accrued expenses and deferred income	5 743	5 167	6 422
Total current liabilities	34 060 82 449	31 188 74 952	33 052 84 210
Total liabilities	312 298	314 681	311 995
TOTAL EQUITY AND LIABILITIES	785 522	840 756	807 704

Group condensed statement of changes in equity

Amounts in TSEK	Equity attributable to shareholders of the parent
				Retained
				earnings
				including net
		Other capital	Translation	profit for the
	Share capital	contributions	reserve	period	Total equity
Opening balance, 1 January 2022	876	930 680	-3 841	-386 265	541 450
Profit/loss for the period				-16 477	-16 477
Other comprehensive income:
Translation differences			1 101		1 101
Total comprehensive income after tax			1 101	-16 477	-15 376
Closing balance, 31 March 2022	876	930 680	-2 740	-402 742	526 074
Opening balance, 1 January 2023	876	930 680	3 294	-439 141	495 709
Profit/loss for the period				-22 099	-22 099
Other comprehensive income:
Translation differences			-386		-386
Total comprehensive income after tax			-386	-22 099	-22 485
	876	930 680	2 908	-461 240	473 224
Closing balance, 31 March 2023

Group condensed statement of cash flows

Amounts in TSEK

	2023	2022	2022	2023
	Jan-Mar	Jan-Mar	Full year	RTM
Net profit/loss for the period	-22 099	-16 477	-52 876	-58 498
Adjustments for depreciation and amortisation and
other non-cash items	9 469	2 600	42 469	49 338
Increase/decrease inventory	456	-704	-7 936	-6 776
Increase/decrease accounts receivable	7 020	-11 730	-2 999	15 751
Increase/decrease other current receivables	-1 355	2 264	4 948	1 329
Increase/decrease accounts payable	-3 245	-47	4 113	915
Increase/decrease other current liabilities	2 067	12 164	15 343	5 246
Cash flow from changes in working capital	4 943	1 947	13 469	16 465
Cash flow from operating activities	-7 687	-11 930	3 062	7 305
Investments in intangible assets	-424	-882	-	458
Investments in tangible assets	-735	-67	-10 918	-11 586
Cash flow from investing activities	-1 159	-949	-10 918	-11 128
Operating cash flow	-8 846	-12 879	-7 856	-3 823
Amortisation of lease	-3 839	1 167	-12 809	-17 816
Amortisation of loan	-159	-245	-900	-814
Change in bank overdraft	922	-3 391	961	5 274
Set-up fee	-	-	-	-
New share issue	-	-	-	-
Other financing activities	74	-292	-1 144	-778
Terminiation of option agreement	-	-
Cash flow from financing activities	-3 002	-2 761	-13 892	-14 134
Cash flow for the period	-11 848	-15 640	-21 748	-17 957
Cash and cash equivalents at start of period	197 727	217 587	217 587	202 304
Exchange difference in cash and cash equivalents	770	357	1 888	2 301
Cash and cash equivalents at end of period	186 648	202 305	197 727	186 648

Amount in TSEK	2023 Jan-Mar	2022 Jan-Mar	2022 Full year	2023 RTM
Revenues	846	-	2 271	3 117
Operating expenses	-1 620	-1498	-5 655	-5 777
Operating profit/loss	-774	-1 498	-3 384	-2 660
Net financial items	1 544	-337	2 534	4 414
Profit/loss after financial items	770	-1 835	-850	1 755
Tax for the period	-	-	-	-
Net profit/loss for the period	770	-1 835	-850	1 755

Condensed parent company income statement

The parent company presents no separate statement of comprehensive income since the company has no items in 2023 or 2022 recognized in other comprehensive income. Net profit/loss for the period for the parent company thereby also constitutes the comprehensive income for the period.

Condensed parent company balance sheet

Amounts in TSEK	2023-03-31	2022-03-31	2022-12-31
ASSETS
Non-current assets
Financial assets	863 028	873 074	863 040
Deferred tax asset	15 255	15 255	15 255
Total non-current assets	878 283	888 329	878 295
Current assets	17 945	8 673	16 656
Cash and cash equivalents	1 512	1 529	2 331
Total current assets	19 457	10 202	18 987
TOTAL ASSETS	897 740	898 531	897 282
EQUITY & LIABILITIES
Total equity	696 059	695 242	695 289
Non-current liabilities
Liabilities to credit institutions	170 941	170 941	170 941
Total non-current liabilities	170 941	170 941	170 941
Current liabilities	30 740	32 348	31 052
Total current liabilities	30 740	32 348	31 052
Total liabilities	201 681	203 289	201 993
TOTAL EQUITY AND LIABILITIES	897 740	898 531	897 282

Performance measures

The company presents certain performance measures in the interim report that are not defined in accordance with IFRS (so-called alternative key ratios according to ESMA guidelines). The company believes that these measures provide useful supplementary information to investors and the company's management as they allow for the evaluation of the company's performance. Since not all companies calculate the measures in the same way, these are not always comparable to measures used by other companies. These performance measures should therefore not be considered a substitute for measures as defined under IFRS.

Definitions and tables below describe how the performance measures are calculated. The measures are alternative in accordance with ESMA's guidelines unless otherwise stated.

EBITDA

Shows the company's earnings capacity from ongoing operations irrespective of capital structure and tax situation. The key figure is used to facilitate comparisons with other companies in the same industry.

The company defines EBITDA as operating profit/loss excluding depreciation and amortization of tangible and intangible assets.

Amounts in TSEK	2023	2022	2022	2023
	jan-mar	jan-mar	Full year	RTM
Operating profit/loss	-18 707	-16 569	-55 667	-57 805
Depreciation and amortisation	12 090	12 567	49 240	48 763
EBITDA	-6 617	-4 002	-6 426	-9 042

EBITDA margin

Shows the company's earnings capacity from ongoing operations, irrespective of capital structure and tax situation, in relation to revenues. The key figure is used to facilitate analysis of the company's result in comparison with comparable companies.

Amounts in TSEK	2023	2022	2022	2023
	jan-mar	jan-mar	Full year	RTM
EBITDA	-6 617	-4 002	-6 426	-9 042
Revenue	61 159	55 202	253 495	259 452
EBITDA-margin %	-10.8%	-7.2%	-2.5%	-3.5%

Cash flow from operating activities per share

Cash flow per share calculated as the sum of cash flow from operating activities and cash flow from investing activities divided by the average number of shares outstanding during the period. The key figure is presented because it is used by analysts and other stakeholders to evaluate the company.

Net debt

Net debt is a measure used to describe the group's indebtedness and its ability to repay its debt with cash generated from the group's operating activities if the debts matured today. The company considers this key figure interesting for creditors who want to understand the group's debt situation.

The company defines net debt as interest-bearing liabilities minus cash and cash equivalents at the end of the period.

Amounts in TSEK	2023	2022	2022
	Jan-Mar	Jan-Mar	Full year
Liabilities to credit institutions	179 220	178 751	179 265
Long-term liabilities leasing	50 629	56 149	48 519
Short-term liabilities leasing	12 155	10 263	10 915
Interest-bearing liabilities	242 004	245 163	238 699
Cash and cash equivalents	-186 648	-202 305	-197 727
Net debt	55 356	42 858	40 972

Equity ratio

Equity ratio is a measure that the company considers important for creditors who want to understand the company's long-term ability to pay. The company defines equity ratio as equity and untaxed reserves (less deferred tax), in relation to the balance sheet total.

Amounts in TSEK	2023 Jan-Mar	2022 Jan-Mar	2022 Full year
Equity	473 224	526 074	495 709
Balance sheet total	785 522	840 756	807 704
Equity ratio %	60.2%	62.6%	61.4%

Profit/loss from financial items

Financial income minus financial expenses. Direct reconciliation against financial report possible.

Note 1 Revenue distribution

Amounts in TSEK	2023	2022	2022	2023
	Jan-Mar	Jan-Mar	Full year	RTM
Type of product/service
License	37 678	33 585	139 443	143 536
New license	1 706	2 820	21 960	20 846
Sales of BIP products	16 265	15 373	62 157	63 049
Total	55 648	51 777	223 560	227 431
Time for revenue recognition
Performance commitment is met at a certain time	53 942	51 777	223 560	227 431
Performace commitment is met during a period of time	1 706	-	-	-
Total	55 648	51 777	223 560	227 431

Note 2 Financial assets and liabilities

The table below shows the breakdown of financial assets and financial liabilities recognized at fair value in the consolidated balance sheet. Distribution of how fair value is determined is based on three levels.

Level 1: according to prices quoted on an active market for the same instrument.

Level 2: based on directly or indirectly observable market data not included in level 1.

Level 3: based on input data that is not observable on the market.

For description of how real values have been calculated, see annual report 2022, note 4. Fair value of financial assets and liabilities is estimated to be substantially consistent with posted values. The group holds derivative instruments for foreign exchange contracts which are recognized at fair value through profit or loss, considering the current exchange rate on the foreign exchange market and the remaining maturity of respective instruments.

Amounts in TSEK	2023	2022
	2023-03-31	2022-03-31
	Derivatives (level 2)	Derivatives (level 2)
Assets
Other current receivables	-	-
Liabilities
Other current liabilities	142	1 345

Quarterly information

Amount in TSEK	Q1 2023	Q4 2022	Q3 2022	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021		Q1 2021 RTM 2023
License revenues	37 678	39 856	36 903	29 099	33 585	24 690	29 529	23 021	26 419	143 536
New license revenues	1 706	6 490	5 520	7 130	2 820	0	526	8 533	0	20 846
Sales of BIP products	16 265	14 928	16 303	15 553	15 373	17 338	13 215	13 251	12 964	63 049
Other revenues	5 511	10 901	7 460	8 151	3 424	4 023	1 927	1 213	2 399	32 023
Total revenues	61 159	72 175	66 185	59 932	55 202	46 051	45 197	46 017	41 783	259 451
EBITDA	-6 617	-1 118	2 535	-3 842	-4 002	-12 114	1 189	1 833	1 908	-9 042
EBITDA margin (%)	-10.8%	-1.5%	3.8%	-6.4%	-7.2%	-26.3%	2.6%	4.0%	4.6%	-3.5%
EBIT	-18 707	-13 300	-10 955	-14 843	-16 569	-23 818	-10 673	-9 991	-9 705	-57 805
Net profit/loss for the period	-22 099	-14 178	-8 546	-13 676	-16 477	-25 404	-10 793	-12 031	-10 545	-58 499
Earnings per share, before and after dilution, SEK	-0.63	-0.40	-0.24	-0.39	-0.47	-0.72	-0.31	-0.36	-0.31	-1.67
Operating cash flow	-7 687	6 963	9 902	-1 874	-11 930	-11 642	14 305	5 485	-893	7 304
Operating cash flow per share, SEK	-0.22	0.20	0.28	-0.05	-0.34	-0.33	0.41	0.16	-0.03	0.21
Net debt	55 356	40 972	36 923	42 392	42 859	30 372	13 219	254 340	254 138	55 356
Total shares (pcs)	35 043 885	35 043 885							35 043 885 35 043 885 35 043 885 35 043 885 35 043 885 33 543 885 33 543 885 35 043 885

Forthcoming disclosures of information

5 May 2023	Annual General Meeting
18 July 2023	Half-year report 1 April - 30 June 2023
27 October 2023	Interim report 1 July - 30 September 2023

Contacts

For additional information, please contact: Anders Göransson, CEO +46 8 440 58 80 Carin Jakobson, CFO +46 8 440 58 80

The quarterly report is not reviewed by the company auditors.

Signatories of the report

The Board of Directors and the CEO certify that the interim report, to the best of their knowledge, provides a fair overview of the parent company's and the group's operations, financial position and results and describes the material risks and uncertainties faced by the parent company and the companies included in the Group.

Stockholm, 27 April 2023

Thomas von Koch Christian Kinch Chairman Deputy chairman

Board Member Board Member

Board Member CEO

Anna Martling Magdalena Persson

Jan Ståhlberg Anders Göransson

This information is information that Bactiguard Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above 27 April 2023, at 08.00 a.m. CET.

This is a translation of the year-end report. In the event of any differences, the Swedish version applies.

About Bactiguard

Bactiguard is a global medtech company with a purpose to prevent infections. We provide safe, cost-effective, and easy-to-use infection prevention technology and solutions across five therapeutic areas – orthopedics, urology, intravascular/critical care, dental, and wound care.

Bactiguard's unique technology is based on a thin noble metal coating that prevents bacterial adhesion and biofilm formation on medical devices. Bactiguard's solutions are biocompatible and make a positive impact by decreasing patient suffering, saving lives and healthcare resources, and fighting antimicrobial resistance, one of the most serious threats to global health and modern medicine.

Bactiguard operates through license partnerships with leading global medtech companies, such as BD and Zimmer Biomet, differentiating their medical devices with our technology, and through the Bactiguard Product Portfolio (BPP). BPP includes coated medical devices such as catheters and trauma implants, and wound care products and sutures.

Bactiguard is headquartered in Stockholm, has production in Sweden and Malaysia, and around 210 employees. Listed on Nasdaq Stockholm, the company reported revenues of 253.5 MSEK in 2022.

Read more about Bactiguard: www.bactiguard.com

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