RaySearch Laboratories

Interim / Quarterly Report • Aug 29, 2022

INTERIM REPORT JANUARY 1-JUNE 30, 2022

"In the second quarter of 2022, order intake increased by 12 percent and net sales rose 3.7 percent. Operating loss amounted to SEK -19.5 M (-22.5) in the second quarter and the operating profit for half-year amounted to SEK 10.0 M (-10.2)."

Johan Löf, CEO of RaySearch

SECOND QUARTER (APRIL-JUNE 2022)

• Order intake SEK 212.5 M (189,8) Order intake SEK 485.0 M (334.9)
• Net sales SEK 160.2 M (154.6) Net sales SEK 368.4 M (316.7)
• Loss after tax SEK -19.7 M (-16.5) Loss after tax SEK -0.4 M (-9.4)
• Loss per share before/after dilution SEK -0.58 (-0.48) Loss per share before/after dilution SEK -0.01 (-0.27)
• Order backlog SEK 1,540.3 M (1,221.2) at the end of the period

HALF-YEAR (JANUARY-JUNE 2022)

-

• Operating loss SEK -19.5 M (-22.5) Operating profit SEK 10.0 M (-10.2)
  -
  -
• Cash flow SEK 16.7 M (-74.4) Cash flow SEK 52.0 M (-41.6)

SIGNIFICANT EVENTS DURING THE SECOND QUARTER

• RaySearch signed an agreement with Region Västerbotten, Swede, to provide RayStation to Norrlands universitetssjukhus.
• RayStation 12A, the latest version of RaySearch's treatment planning system, was launched. In this version deep learning segmentation is included for all users. Further, new features for brachytherapy were launched.
• RayCare 6A, the latest version or RaySearch's information oncology system, was launched. The launch includes important enhancements to all major areas of the product as well as enhanced connectivity with other hospital information systems.
• MedAustron in Austria becomes the first hospital in the world to use the treatment control system RayCommand to treat patients.
• RaySearch signed a collaboration agreement with GE Healthcare to develop new solutions for radiation therapy simulation and treatment planning workflow. GE Healthcare has a big business within medical technology with around 48,000 employees globally.
• Hong Kong Sanatorium & Hospital placed an order for RayStation and became RaySearch's first customer in Hong Kong within the proton therapy segment.
• Seoul National University Hospital placed an order for RayStation.

SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD

• RaySearch awarded treatment planning system tender at University of New Mexico.
• Harris Health System placed an order for RayStation.
• Seoul National University Hospital placed an order for RayCare.
• The total order value of the above orders amounts to SEK 41.3 M.
• Henrik Bergentoft was appointed new CFO at RaySearch and will take up his position November 15, 2022.

FINANCIAL SUMMARY1

AMOUNTS IN SEK 000s		APR-JUN	JAN-JUN			APR 2021 -	HELÅR
	2022	2021	2022	2021		MAR 2022	2021
Net sales	160,235	154,579	368,384	316,681		693,376	641,673
Operating profit/loss	-19,527	-2, 463	10,037	-10,202		-33,102	-53,341
Operating margin, %	-12.2	-14.5	2.7	-3.2		-4.8	-8.3
Profit/loss for the period	-19,731	-16,467	-433	-9,357		-38,391	-47,315
Earnings/loss per share before/after dilution, SEK	-0.58	-0.48	-0.01	-0.27		-1.12	-1.38
Cash flow from operating activities	78,778	58,077	20, 565	162,409		281,318	238,162
Cash flow for the period	16,685	-74,390	52,005	-41,550		21,852	-71,703
Return on equity, %2	-3.1	-2.5	-0.1	-1.4		-6.1	-7.6
Equity/assets ratio, %, at the end of the period2	35.2	55.7	35.2	55.7		35.2	36.0
Share price at the end of the period, SEK	54.4	87.4	54.4	87.4		51.7	56.5

1 For definitions of key ratios, see page 19. 2 See Note 1 for more information about correction of previous error

CEO COMMENTS

THE MARKET REMAINS ERRATIC

During the quarter, we noted a continued, gradual return to normal conditions, although not quite at the pace we expected. In the aftermath of the COVID-19 pandemic, contracts are taking longer to close than before the pandemic. On the other hand, although they take longer, we are actually closing contracts now, compared with during the pandemic when they were nearly all put on hold. Our assessment is that the market will remain relatively erratic for some time to come, with fluctuations between quarters.

In the second quarter of the year, we noted a 12-percent increase in order intake and a slight 3.6-percent increase in sales compared with the year-on-year period. The operating loss was SEK -20 M. It may be worth noting, however, that the large delivery to

MedAustron in the second quarter had only a slightly positive impact on revenue and earnings during the quarter due to accounting effects. In June 2019, MedAustron, which is a center for carbon ion therapy in Austria and an existing RayStation customer, also ordered RayCare and RayCommand. At the same time, RayStation, RayCare and RayCommand were also ordered for an oncology center in Iran, which will be a copy of MedAustron's clinic in Austria. Since April RayStation, RayCare and RayCommand are in clinical use at MedAustron in Austria. Under the applicable accounting standard (IFRS 15) the two orders must be accounted for as a single contract, which results in revenue of EUR 0.8 M for the second quarter. Under the contract, an additional software delivery to Austria remains, as well as the delivery of all products to Iran. If and when both of these deliveries can be made, and the uncertain situation regarding payments from Iran has improved, about EUR 11 M in license revenue remains. Overall, this is RaySearch's largest-ever business transaction. It is expected to generate payments for support of approximately EUR 1 M per year after the next delivery to Austria. So far, RaySearch has received EUR 5.1 M in advance payment and the products increase MedAustron's capacity to treat cancer patients.

INCREASED MARKETING ACTIVITIES

In July, we participated in two important trade shows in the US – AAPM and PTCOG. The interest in our products was great – the major interest in RayCare was particularly gratifying – and we conducted many demonstrations and engaged in a number of rewarding discussions with our partners.

We see also a significantly growing interest in RayCare in our other markets. We believe this will be further strengthened at the end of the year when it will be possible to connect RayCare with the Varian TrueBeam system. One of the centers we held discussions with during the year is the carbon ion center at Seoul National University Hospital (SNUH) in South Korea. As previously communicated, SNUH placed an order for RayStation in the second quarter and they also ordered RayCare in early July.

RaySearch and Mevion have been working together for many years but the order for RayStation that we received from Mevion China in the second quarter of this year is the first from this company in China. The order means that RayStation was sold to Tongji Hospital in Wuhan, China, together with Mevion's proton therapy system.

Another significant agreement during the quarter was with Region Västerbotten, under which RaySearch will deliver RayStation to the University Hospital of Umeå in Sweden. We have been involved in rewarding research collaborations with the University Hospital of Umeå for many years, and I am very pleased that our technology will now be used clinically at another university hospital in Sweden.

COLLABORATIONS TO DEVELOP NEW TECHNOLOGY

In May, RaySearch entered into an agreement to collaborate with GE Healthcare in the UK, one of the leading actors in the world in precision health. The aim is to jointly develop a new radiation therapy simulation and treatment planning workflow solution by combining RayStation with GE Healthcare's multi-modality simulator systems to make cancer treatment faster and more precise.

ProtOnART, a consortium for the advancement of Proton Online Adaptive Radiation Therapy, was formed in June with RaySearch as one of the members. The other members are OncoRay in Dresden, Germany, PARTICLE in Leuven, Belgium, and Ion Beam Applications (IBA), also based in Belgium. ProtOnART's first goal is to develop an efficient daily online adaptive proton therapy workflow and the consortium's end goal is to develop near-real-time adaptive proton therapy, where plan adaptation is performed during or between the delivery of the proton fields. We are looking forward to following developments in this exciting area.

WELL POSITIONED FOR GROWTH

We are accustomed to quarterly fluctuations, since the timing of a few larger deals can have a significant impact on the sales and earnings for a single quarter. As mentioned, the market is still erratic in the aftermath of the pandemic. However, we can see that the trend is moving in the right direction even though the pace is slower than we hoped.

The cost-reduction program introduced in autumn 2021 is continuing. The number of employees decreased 11 percent year-on-year and costs for travel and market events are half of what they were before the pandemic. However, costs increased due to employee changes in the finance department. Due to lower capitalization and higher amortization, the effects of the program have not been fully reflected in operating profit, but we have noted a positive effect on cash flow.

Despite the delayed recovery of the market, I am optimistic about the future. We will continue to follow our chosen path, with a focus on sales, product development and cost control. With positive cash flow and an order backlog that has increased to SEK 1,540 M, we have a solid foundation for a return to growth during the year.

Stockholm, August 29, 2022

Johan Löf CEO and founder

FINANCIAL INFORMATION

RaySearch operates in a market with uneven order flows where large individual orders can have a substantial impact on revenue recognition between the quarters and, because the company has limited (less than 10 percent) variable costs for license revenue, operating profit is affected by an amount that is nearly as high. For this reason, a longer perspective than a few quarters should be taken.

ORDER INTAKE AND ORDER BACKLOG

In the second quarter of 2022, order intake rose 12.0 percent year-on-year to SEK 212.5 M (189.8). License order intake increased 20.3 percent to SEK 66.9 M (55.6) while order intake for support increased 1.8 percent to SEK 118.7 M (116.6).

Order intake (amounts in SEK M)	Q2-22	Q1-22	Q4-21	Q3-21	Q2-21	Rolling 12 months	Full-year 2021
Licenses	66.9	131.4	170.9	46.2	55.6	415.4	350.7
Hardware	21.2	24.1	35.7	7.9	9.3	88.9	65.0
Support (incl. warranty support)	118.7	111.2	130.7	69.1	116.6	429.7	365.0
Training and other	5.7	5.8	7.7	4.7	8.2	23.8	27.1
Total order intake	212.5	272.5	345.0	127.9	189.8	957.8	807.8
Order backlog (amounts in SEK M)	Q2-22	Q1-22	Q4-21	Q3-21	Q2-21
Licenses	213.3	184.1	176.6	105.3	115.0
Hardware	82.4	74.2	66.2	38.4	36.9
Support (incl. warranty support)	1,169.9	1,159.9	1,053.3	1,009.2	1,001.7
Training and other	74.7	70.5	66.8	59.5	59.9
Total order backlog at the end of the period	1,540.3	1,496.5	1,370.7	1,220.2	1,221.2

In the first half of 2022, order intake increased 44.8 percent to SEK 485.0 M (334.9). License order intake increased by 48.4 percent to SEK 198.3 M (133.6) and order intake for support increased 39.3 percent to SEK 229.9 M (165.1).

At June 30, 2022, the total order backlog was SEK 1,540.3 M (1,221.2), which is expected to generate revenue of approximately SEK 479 M over the next 12 months. The remaining amount in the order backlog mainly pertains to support commitments that are primarily expected to generate revenue during a subsequent four-year period

REVENUE

In the second quarter of 2022, net sales increased 3.7 percent to SEK 160.2 M (154.6). The change was attributable to higher license sales, which increased 8.0 percent to SEK 68.4 (63.4). The change in sales at unchanged currencies was -5.5 percent (4.5).

Recurring support revenue rose 8.4 percent to SEK 73.1 M (67.5), accounting for 46 percent (44) of net sales in the second quarter. Hardware sales, which have a limited profit margin, decreased by 25.5 percent to SEK 14.8 M (19.8). Excluding hardware sales, sales increased 7.9 percent year-on-year.

Revenue (amounts in SEK M)	Q2-22	Q1-22	Q4-21	Q3-21	Q2-21	Rolling 12 months	Full year 2021
License revenue	68.4	111.7	105.5	55.7	63.4	341.3	307.1
Hardware revenue	14.8	16.6	9.2	7.1	19.8	47.6	51.5
Support revenue	73.1	76.6	71.8	67.3	67.5	288.9	268.5
Training and other revenue	3.9	3.2	2.1	6.4	3.9	15.6	14.5
Net sales	160.2	208.1	188.6	136.4	154.6	693.4	641.7
Change in sales, corresp. period, %	3.7	28.4	17.6	14.5	-5.6	16.4	-1.6
Change in organic sales, corresp. period, %	-5.5	19.0	22.0	11.9	4.5	11.7	1.6

In the first half of 2022, net sales increased 16.3 percent to SEK 368.4 M (316.7). The change was attributable to higher license revenue, which increased 23.4 percent to SEK 180.2 M (146.0).

In the first half of 2022, net sales had the following geographic distribution: North America, 41 percent (38); Asia, 27 percent (23); Europe and the rest of the world, 32 percent (39).

OPERATING PROFIT

In the second quarter of 2022, operating profit increased to SEK -19.5 M ( -22.5), representing an operating margin of - 12.2 percent (-14.5). In the second quarter, operating expenses increased 1.5 percent to SEK 179.8 M (177.0).

In the second quarter, the net of exchange-rate gains and losses amounted to SEK 4.8 M (-4.6) since a large proportion of the Group's receivables are denominated in USD and EUR, which was strengthened against the SEK in the second quarter compared with the end of the first quarter. Adjusted for the effects of these currency translations, the operating result for the second quarter would have amounted to SEK -24.3 M (-17.9).

In the first half-year, the operating result increased to SEK 10.0 M (-10.2), representing an operating margin of 2.7 percent (-3.2).

Currency effects

The company's sales and earnings are impacted by USD/EUR to SEK exchange rates, since most sales are invoiced in USD and EUR, while most costs are denominated in SEK.

At unchanged exchange rates, the change in sales was -5.5 percent in the second quarter of 2022, compared with the yearearlier period. In addition, the company incurred an exchange rate effect of SEK 4.8 M (-4.6) for balance sheet items in the second quarter. Currency effects therefore had a positive impact on net sales and operating profit in the second quarter of 2022.

The company follows the financial policy established by the Board, whereby exchange-rate fluctuations are not hedged.

Capitalization of development costs

RaySearch is a research and development-oriented company

that makes significant investments in the development of software solutions for improved cancer treatment. At June 30, 2022, 188 employees (212) were engaged in research and development, corresponding to 50 percent (50) of the total number of employees.

INTERIM REPORT JANUARY 1-JUNE 30, 2022

Capitalization of development costs	Q2-22	Q1-22	Q4-21	Q3-21	Q2-21	Rolling 12 months	Full-year 2021
Research and development costs	59.9	64.3	79.1	57.9	68.0	261.2	270.0
Capitalization of development costs	-46.0	-52.4	-59.3	-40.0	-52.5	-197.7	-203.3
Amortization of capitalized development costs	45.4	45.0	44.1	43.2	40.1	177.7	166.7
Research and development costs after adjustments for capitalization and amortization of development costs	59.2	57.0	63.9	61.2	55.7	241.3	233.4

In 2022, RaySearch continued to invest in both existing products and future products. In total, research and development costs decreased 6.6 percent to SEK 124.2 M (133.0) in the first half of 2022, corresponding to 34 percent (42) of the company's net sales. The decrease was attributable to a lower number of employees in research and development.

Development costs of SEK 98.4 M (104.0) were capitalized, down 5.4 percent, representing 79 percent (78) of total research and development costs.

Amortization of capitalized development costs rose 13.9 percent to SEK 90.4 M (79.4), and the decrease was attributable to the launching of new products.

Research and development costs (after adjustments for capitalization and amortization of development costs) rose 7.2 percent to SEK 116.2 M (108.3)

Amortization and depreciation

In the second quarter of 2022, total amortization and depreciation increased 19.3 percent to SEK 71.0 M (59.6), of which amortization of intangible fixed assets accounted for SEK 45.5 M (40.2), mainly related to capitalized development costs. Depreciation of tangible fixed assets amounted to SEK 25.6 M (19.2).

In the first half of 2022, total amortization and depreciation amounted to SEK 141.1 M (118.1), of which amortization of intangible fixed assets accounted for SEK 90.5 M (79.5), mainly related to capitalized development costs. Depreciation of tangible fixed assets amounted to SEK 50.6 M (38.3).

PROFIT AND EARNINGS PER SHARE

In the second quarter of 2022, loss after tax was SEK -19.7 M (-16.5), corresponding to loss per share of SEK -0.58 (-0.48) before and after dilution. For the first half of 2022, loss after tax totaled SEK -0.4 M (-9.4), representing loss per share of SEK -0.01 (-0.27) before and after dilution. Tax expense for the first six months of the year amounted to SEK 4.9 M (-2.9), corresponding to an effective tax rate of 109.7 percent (23.8)

CASH FLOW AND LIQUIDITY

In the second quarter of 2022, cash flow from operating activities was SEK 79.8 M (58.1) and the change is attributable to an increase in operating liabilities. Working capital mainly comprises various types of customer receivables, such as accounts receivable and current and long-term unbilled customer receivables in instances where payment plans exist. In the first halfyear, cash flow from operating activities was SEK 205.6 M (162.4).

At the end of the period, the company's total customer receivables amounted to 48 percent (47) of net sales over the past 12 months. Working capital amounted to -7 percent (6) of net sales over the past 12 months. The decline is attributable to an increase in operating liabilities including advance payments from customers.

In the second quarter, cash flow from investing activities was SEK -67.6 M (-70.8). Investments in intangible fixed assets amounted to SEK -46.0 M (-52.5) and comprised capitalized development costs for the company's products – RayStation, RayCare, RayCommand and RayIntelligence. Investments in tangible fixed assets amounted to SEK -21.5 M (-18.4), mainly due to investments in a new head office in Stockholm.

In the second quarter of 2022, cash flow from financing activities amounted to SEK 4.5 M (-61.6), and to SEK -25.4 M (- 72.8) in the half-year period. The negative cash flow for the half-year period is due to a repayment of the company's credit facility of SEK 21 M in the first quarter.

Cash flow for the period was SEK 16.7 M (-74.4) in the second quarter, and SEK 52.0 M (-41.6) in the first half of the year. At June 30, consolidated cash and cash equivalents amounted to SEK 162.1 M (128.8).

FINANCIAL POSITION

At June 30, 2022, RaySearch's total assets amounted to SEK 1,797 M (1,193) and the equity/assets ratio was 35.2 percent (55.7). Current receivables amounted to SEK 414 M (341). The receivables mainly comprised various types of customer receivables.

RaySearch's credit facilities comprised a revolving loan facility of up to SEK 150 M maturing in Mars 2025 and an overdraft facility of SEK 50 M, maturing in December 2022. Chattel mortgages amounted to SEK 100 M. At June 30, 2022, short-term loans of SEK 0 M (0) had been raised under the company's revolving loan facility and SEK 0 M (0) of the credit facility had been drawn.

At June 30, 2020, the Group's net cash amounted to SEK -386.2 M (50.4). The change was due to increased leaseliabilities for the new headquarter facilities in the forth quarter 2021.

EMPLOYEES

In the January-June period of 2022, the average number of employees in the Group was 383 (414). At the end of the second quarter, the Group had 376 employees (423), of whom 271 (315) were based in Sweden, and 105 (108) in foreign subsidiaries.

PARENT COMPANY

RaySearch Laboratories AB (publ) is the Parent Company of the RaySearch Group. Since the Parent Company's operations are consistent with the Group's operations in all material respects, the comments for the Group are also largely relevant for the Parent Company.

Differences in profitability between the Parent Company and the Group are attributable to the Parent Company accounting for a relatively high proportion of operating expenses, and to the capitalization of development costs being recognized in the Group but not in the Parent Company. The Parent Company was also not affected by the changes pertaining to lease recognition under IFRS 16, and instead continues to recognize lease payments as operating lease payments. This reduces operating profit compared with if IFRS 16 had been applied.

The Parent Company's current receivables mainly comprise receivables from Group companies and external customers.

SIGNIFICANT EVENTS DURING THE SECOND QUARTER

Agreement signed with Region Västerbotten

RaySearch signed an agreement with Region Västerbotten to provide RayStation at the department for radiotherapy at Norrlands universitetssjukhus. The center annually treats around 1,900 cancer patients from all over northern Sweden and RayStation will now become the sole treatment planning system for external radiotherapy. The order includes new and advanced technology, using machine learning techniques for automatic segmentation and planning.

Launch of RayStation 12A

RayStation 12A, the latest version of RaySearch's treatment planning system, was launched. In this version deep learning segmentation is included for everyone that is using RayStation for patient modeling. Further, new features for brachytherapy as well as several general improvements were launched.

Launch of RayCare 6A

RayCare 6A, the latest version of RaySearch's oncology information system, was launched. This version brings enhanced functionality to the patient chart, such as usability, and enhanced connectivity with other hospital information systems, improving flow of data between systems.

Launch of the consortium ProtOnART

In collaboration with OncoRay, PARTICLE, and IBA RaySearch has founded ProtOnART, a new consortium for the development of online adaptive radiation therapy with protons.The first goal for the consortium is to develop an efficient daily online adaptive proton therapy workflow demonstrated in clinical practice by the clinical partners. The end goal of ProtOnART is to develop near-real-time adaptive proton therapy, where plan adaptation is performed during or between the delivery of the proton fields.

MedAustron first clinic to take RayCommand in clinical use

MedAustron in Austria became the first clinic in the world using treatment control system RayCommand to treat patients. Through this milestone MedAustron was also the first oncology center where RayStation, RayCare and RayCommand were used together to treat patients.

Agreement with Hong Kong Sanatorium & Hospital

Hong Kong Sanatorium & Hospital placed an order for RayStation for its proton therapy center, thereby becoming RaySearch's first customer in Hong Kong within the proton therapy segment.

Agreement with Seoul National University Hospital

Seoul National University Hospital (SNUH) placed an order for RayStation. SNUH is the second carbon ion center in Korea to select RaySearch, the first customer was Yonsei Cancer Center in Seoul.

Agreement with Mevion China

Mevion China placed an order for RayStation, which Mevion China has sold together with Mevion's proton therapy system to Tongji Hospital in Wuhan in China. RaySearch and Mevion have been collaborating since 2014. Treatment planning for particle treatments (protons/carbon ions/BNCT) is an important focus area for RaySearch and today RayStation has a global market share of more than 60 percent, a position that is further strengthened by the new order.

Agreement with GE Healthcare

RaySearch has signed an agreement with GE Healthcare to develop a new radiation therapy simulation and treatment planning solution, designed to make use of the latest advancements in treatment planning technology.The companies aim to combine RaySearch's advanced treatment planning system RayStation with GE Healthcare's leading multi-modality (CT/MR/molecular imaging) simulator systems to make cancer treatment faster and more precise.

RayCare in clinical use with CyberKnife at Swiss Medical Network in Switzerland

RayCare was taken into clinical use with Accuray CyberKnife radiation treatment delivery system at La Clinique Générale-Beaulieu, which is part of Swiss Medical Network in Switzerland. The clinic thereby became the first in the world to carry out a patient treatment using RayCare and CyberKnife.

Management change

Torbjörn Wingårdh stepped down as CFO of RaySearch.

SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD

RaySearch awarded treatment planning system tender with RayStation at University of New Mexico

The University of New Mexico Comprehensive Cancer Center has placed an order for RayStation through a public tender process. RayStation will replace the hospital's current treatment planning system.

Agreement with Harris Health

Harris Health System in Texas, the USA, placed an order for RayStation for its center Smith Clinic. RayStation will replace the center's current treatment planning system.

Agreement with Seoul National University Hospital for RayCare

Seoul National University Hospital (SNUH) placed an order for RayCare. In the second quarter of 2022 SNUH placed an order for RayStation.

Management change

Henrik Bergentoft was appointed new CFO of RaySearch. He will take up his position November 15, 2022.

EFFECTS OF THE COVID-19 PANDEMIC

Even though the pandemic is over in most countries, the effects of it remain a challenge for many operations. RaySearch is monitoring the situation closely and is prepared to take new action and align the company's operations if needed.

Effects on RaySearch's operations in the second quarter of 2022

Sales. The negative effect of the pandemic on RaySearch's sales appears to be weakening as the pandemic subsides. In Asia, market conditions normalized and conditions improved in Europe and the US during the quarter.

Delivery capacity. As a software company, RaySearch is well equipped for remote collaboration and both our R&D and delivery capacity have remained relatively unscathed by the COVID-19 pandemic to date.

In the second quarter, COVID-19 did not have any major impact on the company's assessment items.

Expected future effects

It is still difficult to say how the ongoing pandemic will affect the coming quarters with any great certainty. The situation has normalized in most countries, though a few countries have registered rising case numbers.

The company believes the underlying need and demand for effective software solutions for cancer care is in the process of returning to pre-pandemic levels. Since sales activities have been restricted for some time, however, it may take time before the full sales effect is regained. We see no major challenges in terms of R&D or the company's delivery capacity. The company will continue to focus on protecting the company's cash flow and liquidity.

Increased focus on efficiencies and digitization. One effect of the COVID-19 pandemic could be a further acceleration of the ongoing digital transformation. The pandemic has drastically highlighted the major potential and benefits of digital technology, which could be positive for RaySearch's operations in the long term because the company's software solutions enable cancer clinics to improve their efficiency.

THE COMPANY'S SHARE

At June 30, 2022, the total number of registered shares in RaySearch was 34,282,773, of which 8,454,975 were Class A and 25,827,798 Class B shares. The quotient value is SEK 0.50 and the company's share capital amounts to SEK 17,141,386.50. Holders of Class A shares are entitled to 10 votes per share, and holders of Class B shares are entitled to one vote per share, at General Meetings. At June 30, 2022, the total number of votes in RaySearch was 110,377,548.

SHARE OWNERSHIP

At June 30, 2022, the number of shareholders in RaySearch was 6,767, according to Euroclear, and the largest shareholders were as follows:

	Class A			Share capital,
Name	shares	Class B shares	Total shares	%	Votes, %
Johan Löf	6,243,084	18,393	6,261,477	18.3	56.6
State Street Bank and Trust Co, W9	0	4,249,525	4,249,525	12.4	3.9
BNP Paribas Sec Services Paris, W8IMY (GC)	0	2,406,695	2,406,695	7.0	2.2
Första AP-fonden	0	1,982,448	1,982,448	5.8	1.8
Swedbank Robur Ny Teknik BTI	0	1,800,000	1,800,000	5.3	1.6
Anders Brahme	1,150,161	200,000	1,350,161	3.9	10.6
Andra AP-fonden	0	1,220,942	1,220,942	3.6	1.1
Carl Filip Bergendal	1,061,577	139,920	1,201,497	3.5	9.7
J.P Morgan SE, Luxembourg Branch, W8IMY/NQI	0	1,155,064	1,155,064	2.8	0.9
Avanza Pension	0	543,548	543,548	1.6	0.5
Total, 10 largest shareholders	8,454,822	13,716,535	22,171,357	64.1	88.9
Others	153	12,111,263	12,111,416	35.9	11.1
Total	8,454,975	25,827,798	34,282,773	100	100

Source: Euroclear

OTHER INFORMATION

2022 ANNUAL GENERAL MEETING

The Annual General Meeting (AGM) of RaySearch Laboratories AB (publ) took place on Wednesday, May 25, 2022 and was held only through postal voting in accordance with temporary legislation.The annual general meeting re-elected Lars Wollung, Carl Filip Bergendal, Johan Löf, Britta Wallgren, Hans Wigzell and Johanna Öberg as members of the Board. Lars Wollung was also re-elected as Chairman of the Board. The annual general meeting resolved that no dividend would be paid for the 2021 fiscal year.

RISKS AND UNCERTAINTIES

As a global Group with operations in different parts of the world, RaySearch is exposed to various risks and uncertainties, such as market risk, operational and legal risk, as well as financial risk pertaining to exchange-rate fluctuations, interest rates, liquidity and financing opportunities. RaySearch's risk management aims to identify, measure and reduce risks related to the Group's transactions and operations. For more information about risks and risk management, refer to pages 39-41 of RaySearch's 2021 Annual Report. There have been no significant changes with any impact on the risks reported. This also applies to the risks and uncertainties arising from the COVID-19 pandemic that could affect RaySearch's sales, earnings and financial position.

SEASONAL VARIATIONS

RaySearch's customers are healthcare providers and the company's operations are somewhat characterized by seasonal variations that are typical for the industry, whereby the fourth quarter is normally the strongest – mainly because many customers have budgets that follow the calendar year.

ENVIRONMENT AND SUSTAINABILITY

Sustainability is a key aspect of RaySearch's strategy and operations, and the company is working actively to become a sustainable enterprise. The primary aim of RaySearch's operations is to help cancer clinics improve and save the lives of cancer patients. Through innovative software solutions, the company is continuously striving to improve and streamline workflows in clinical environments and to improve treatment outcomes for cancer patients. The customer value created presents business opportunities for RaySearch, but also major social benefit and economic gains.

The negative environmental impact of the company's products is limited. The company's environmental impact is mainly related to the purchase of goods and services, energy use and transportation. RaySearch aims to contribute to sustainable development and therefore works actively to improve the company's environmental performance wherever this is economically viable. More information about the company's environmental and sustainability initiatives is available in the company's Sustainability Report on pages 22-28 of RaySearch's 2021 Annual Report.

REVIEW

This interim report has not been reviewed by the company's auditors.

The Board of Directors and CEO give their assurance that this interim report gives a true and fair view of the Group's and the Parent Company's operations, position and earnings, and describes the significant risks and uncertainties facing the Parent Company and the companies included in the Group.

Stockholm, August 28, 2022 The Board of Directors of RaySearch Laboratories AB (publ)

Lars Wollung Chairman of the Board Johan Löf CEO and Board member Carl Filip Bergendal Board member

Britta Wallgren Board member Hans Wigzell Board member Johanna Öberg Board member

FOR FURTHER INFORMATION, PLEASE CONTACT:

Johan Löf, CEO	Tel: +46 (0)8 510 530 00	johan.lof@raysearchlabs.com
Björn Hårdemark, Interim CFO	Tel: +46 (0)70 95 642 17	bjorn.hardemark@raysearchlabs.com

The information contained in this interim report is such that RaySearch Laboratories AB (publ) is obliged to disclose under the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication on August 29, 2022 at 7:45 a.m. CEST.

WEBCAST

CEO Johan Löf and Interim CFO Björn Hårdemark will present RaySearch's interim report for April-June 2022 at a webcast to be held in English on Monday, August 29, 2022 at 10:00-10:30 a.m. CEST.

Link to webcast: https://raysearchlabs.creo.se/220825

You can also join the webcast by phone: Sweden +46 8 505 583 51 UK: +44 333 300 92 67 US: +1 646 722 49 56

FINANCIAL CALENDAR

Interim report for the third quarter, 2022 Year-end report, 2022 Interim report for the first quarter, 2023 2022 Annual Report (published on the website) Annual General Meeting 2023

November 17, 2022 February 16, 2023 May 17, 2023 April 27, 2023 May 25, 2023

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME IN SUMMARY

AMOUNTS IN SEK 000s	APR-JUN		JAN-JUN		JUL 2021-	FULL YEAR
Not	2022	2021	2022	2021	jun-22	2021
Net sales 2,3	160,235	154,579	368,384	316,681	693,376	641,673
Cost of goods sold1	-13,393	-17,796	-28,045	-33,016	-45,426	-50,397
Gross profit	146,842	136,783	340,339	283,665	647,950	591,276
Other operating income	8,770	3,353	23,222	20,503	35,498	32,779
Selling expenses	-70,646	-67,573	-141,108	-132,833	-308,467	-300,192
Administrative expenses	-41,646	-31,375	-83,007	-58,077	-146,966	-122,036
Research and development costs	-59,202	-55,697	-116,174	-108,333	-241,284	-233,443
Other operating expenses	-3,645	-7,954	-13,235	-15,127	-19,833	-21,725
Operating profit/loss	-19,527	-22,463	10,037	-10,202	-33,102	-53,341
Loss from financial items	-2,167	-1,205	-5,570	-2,084	-8,818	-5,332
Profit/loss before tax	-21,694	-23,668	4,467	-12,286	-41,920	-58,673
Tax	1,963	7,201	-4,900	2,929	3,529	11,358
Profit/loss for the period2	-19,731	-16,467	-433	-9,357	-38,391	-47,315
Other comprehensive income
Items to be reclassified to profit or loss
Translation difference of foreign operations for the period	3,071	-452	3,708	678	5,272	2,242
Comprehensive income for the period2	-16,660	-16,919	3,275	-8,679	-33,119	-45,073
Earnings/loss per share before and after dilution (SEK)	-0.58	-0.48	-0.01	-0.27	-1.12	-1.38

1 Comprises costs for hardware and license costs paid, but not amortization of capitalized development costs, which is included in research and development costs. 2 Fully (100 percent) attributable to Parent Company shareholders.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY IN SUMMARY

AMOUNTS IN SEK 000s	APR-JUN			JAN-JUN	FULL-YEAR
	2022	2021	2022	2021	2021
Opening balance according to adopted Annual Report	648,247	681,625	628,312	694,351	694,351
Adjustment on correction of error (net of tax)3	-	-	-	-20,966	-20,966
Adjusted opening balance	648,247	681,625	628,312	673,385	673,385
Profit/loss for the period	-19,731	-16,467	-433	-9,357	-47,315
Translation difference for the period	3,071	-452	3,708	678	2,242
Closing balance	631,587	664,706	631,587	66,706	628,312

3 See Note 1 for more information about correction of previous error.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION IN SUMMARY

AMOUNTS IN SEK 000s Note	Jun 30, 2022	Jun 30, 2021	Dec 31, 2021
ASSETS
Intangible fixed assets	531,020	511,323	523,109
Tangible fixed assets	652,844	181,639	666,539
Deferred tax assets 1	27,659	21,888	28,525
Other long-term receivables	9,704	7,979	10,204
Total fixed assets	1,221,227	722,829	1,228,377
Inventories	43,934	20,317	29,991
Current receivables	369,586	320,900	383,843
Cash and cash equivalents	162,068	128,815	102,535
Total current assets	575,588	470,032	516,369
TOTAL ASSETS	1,796,815	1,192,861	1,744,746
EQUITY AND LIABILITIES
Equity 1	631,587	664,706	628,312
Deferred tax liabilities	109,141	112,772	107,784
Long-term interest-bearing liabilities	495,626	51,699	491,896
Total long-term liabilities	604,767	164,471	599,680
Accounts payable	43,549	32,049	48,774
Current interest-bearing liabilities	52,678	26,731	70,381
Other current liabilities 1	464,234	304,904	397,559
Total current liabilities	560,461	363,684	516,754
TOTAL EQUITY AND LIABILITIES	1,796,815	1,192,861	1,744,746

CONSOLIDATED STATEMENT OF CASH FLOW IN SUMMARY

BELOPP i KSEK	APR-JUN		JAN-JUN		JUL 2021 -	HELÅR
Note	2022	2021	2022	2021	JUN 2022	2021
Profit/loss before tax	-21,694	-23,668	4,467	-12,286	-41,920	-58,673
Adjusted for non-cash items2	71,092	62,811	141,551	105,299	262,889	226,637
Taxes paid	-4,740	-4,245	-8,196	-10,511	19,963	17,648
Cash flow from operating activities before changes in working capital	44,658	34,898	137,822	82,502	240,932	185,612
Cash flow from changes in operating receivables	-40,704	88,120	4,481	118,787	-97,253	17,053
Cash flow from changes in operating liabilities	75,824	-64,941	63,262	-38,880	137,639	35,497
Cash flow from operating activities	79,778	58,077	205,565	162,409	281,318	238,162
Cash flow from investing activities Cash flow from financing activities	-67,593 4,500	-70,843 -61,624	-128,144 -25,416	-131,118 -72,841	-234,657 -24,809	-237,631 -72,234
Cash flow for the period	16,685	-74,390	52,005	-41,550	21,852	-71,703
Cash and cash equivalents at the beginning of the period	139,816	205,215	102,535	168,746	128,815	168,746
Exchange-rate difference in cash and cash equivalents Cash and cash equivalents at the end of the period	5,567 162,068	-2,010 128,815	7,528 162,068	1,619 128,815	11,401 162,068	5,492 102,535

² These amounts mainly include amortization of capitalized development costs, right-of-use assets and unrealized currency effects.

PARENT COMPANY INCOME STATEMENT IN SUMMARY

AMOUNTS IN SEK 000s	APR-JUN			JAN-JUN	FULL-YEAR
Note	2022	2021	2022	2021	2021
Net sales 2,3	120,017	110,421	281,881	232,905	477,055
Cost of goods sold1	-6,469	-5,506	-9,435	-13,149	-26,477
Gross profit	113,548	104,915	272,446	219,756	450,578
Other operating income	8,585	3,224	22,939	20,239	32,227
Selling expenses	-37,070	-40,569	-79,542	-78,003	-177,313
Administrative expenses	-66,895	-31,735	-108,423	-58,171	-122,793
Research and development costs	-44,015	-68,040	-108,941	-133,249	-270,868
Other operating expenses	-3,274	-7,589	-13,029	-14,743	-20,704
Operating profit/loss	-29,121	-39,794	-14,550	-44,171	-108,873
Loss from financial items	91	-571	-1,073	-771	-1,618
Profit/loss after financial items	-29,030	-40,365	-15,623	-44,942	-110,491
Appropriations	-	-	-	-	32,615
Profit/loss before tax	-29,030	-40,365	-15,623	-44,942	-77,876
Tax on profit/loss for the period	3,132	8,254	394	8,743	14,367
Profit/loss for the period	-25,898	-32,111	-15,229	-36,199	-63,509

1 Comprises costs for hardware and royalties but not amortization of capitalized development costs, which is included in research and development costs.

PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME

AMOUNTS IN SEK 000s	APR-JUN			JAN-JUN	FULL-YEAR
	2022	2021	2022	2021		2021
Profit/loss for the period	-25,898	-32,111	-15,229	-36,199		-63,509
Other comprehensive income	-	-	-	-		-
Comprehensive income for the period	-25,898	-32,111	-15,229	-36,199		-63,509

PARENT COMPANY BALANCE SHEET IN SUMMARY

AMOUNTS IN SEK 000s	Note	Jun 30, 2022	Jun 30, 2021	Dec 31, 2021
ASSETS
Intangible fixed assets		459	692	575
Tangible fixed assets		62,942	59,694	69,225
Shares and participations		3,958	3,958	3,958
Deferred tax assets	1	28,229	20,828	26,695
Long-term receivables from Group companies		0	20,595	0
Other long-term receivables		15,572	7,480	16,344
Total fixed assets		111,160	113,247	116,797
Inventories		5,335	497	6436
Current receivables		286,041	299,490	360,363
Cash and bank balances		85,040	74,336	11,165
Total current assets		376,416	374,323	377,964
TOTAL ASSETS		487,576	487,570	494,761
EQUITY AND LIABILITIES
Equity
Restricted equity
Share capital		17,141	17,141	17,141
Statutory reserve		43,630	43,630	43,630
Total restricted equity		60,771	60,771	60,771
Unrestricted equity
Retained earnings	1	118,235	181,733	181,733
Profit/loss for the year		-15,229	-36,199	-63,509
Total non-restricted equity		103,006	145,534	118,224
Total equity		163,777	206,305	178,995
Untaxed reserves		-	32,615	-
Long-term liabilities		17,563	879	6,447
Accounts payable		24,508	22,353	40,169
Current interest-bearing liabilities		-	-	21,268
Other current liabilities	1	281,728	225,418	247,882
Total current liabilities		306,236	247,771	309,319
TOTAL EQUITY AND LIABILITIES		487,576	487,570	494,761

NOTES, GROUP

NOTE 1 ACCOUNTING POLICIES

The RaySearch Group applies International Financial Reporting Standards (IFRS) as adopted by the EU. The accounting policies applied are consistent with those described in the 2021 Annual Report for RaySearch Laboratories AB (publ), which is available at www.raysearchlabs.com This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act.

RaySearch Laboratories AB (publ) is the Parent Company of the RaySearch Group. The Parent Company applies the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities. The Parent Company's operations are consistent with the Group's operations in all material respects.

Differences in profitability between the Parent Company and the Group are attributable to the Parent Company accounting for a relatively high proportion of operating expenses, and to the capitalization of development costs being recognized in the Group but not in the Parent Company. The Parent Company was also not affected by IFRS 16, and will continue to recognize lease payments on a straight-line basis over the lease term. This reduces operating profit compared with if IFRS 16 had been applied.

The Parent Company's current receivables mainly comprise receivables from Group companies and external customers.

Correction of error

In the second quarter, revenues for 2019 and 2020 have been corrected due to a previous error.The error was introduced in 2019 when a deal was separated into performance obligations in an incorrect way, which impacted amounts and timings for the revenues. The correction affects revenues in 2019 and 2020 in the Group and the Parent Company by SEK -23.9 M and SEK -2.8 M and the tax by SEK 5.1 M and SEK 0.6 M, respectively. The effect on 2021 is that the opening balance is adjusted by SEK -21.0 M, deferred tax assets by SEK 5.7 M and deferred income by SEK 26.7 M in the Parent Company. The effect is the same in the Group.

NOTE 2 REVENUE FROM CONTRACTS WITH CUSTOMERS

RaySearch conducts sales of goods and services in various regions. Revenue from sales of licenses and hardware is recognized in profit or loss at a point in time, while revenue from sales of training and support is recognized over time.

AMOUNTS IN SEK 000s		APR-JUN
	2022	2021	Change	APR 2021- MAR 2022	Full-year 2021
Revenue by type
Licenses	68,443	63,354	8,03%	341,333	307,138
Support	73,125	67,485	8,36%	288,873	268,526
Hardware	14,754	19,807	-25,51%	47,612	51,496
Training and other	3,913	3,933	-0,51%	15,558	14,513
Total revenue from contracts with customers	160,235	154,579	3,66%	693,376	641,673
Revenue by geographic market
North America	72,872	60,402	20,65%	258,116	224,341
APAC	24,489	31,422	-22,06%	185,933	173,547
Europe and rest of the world	62,874	62,755	0,19%	249,327	243,785
Total revenue from contracts with customers	160 235	154 579	3,66%	693 376	641,673
Revenue by date for revenue recognition
Goods/services transferred at a point in time	83,197	83,161	0,04%	388,945	358,634
Services transferred over time	77,038	71,418	7,87%	304,431	283,039
Total revenue from contracts with customers	160,235	154,579	3,66%	693,376	641,673

BELOPP I KSEK		YTD
	2022	2021	Change	R12	Helår 2021
Revenue by type
Licenses	180,154	145,959	23,43%	341,333	307,138
Support	149,769	129,422	15,72%	288,873	268,526
Hardware	31,351	35,235	-11,02%	47,612	51,496
Training and other	7,110	6,065	17,23%	15,558	14,513
Total revenue from contracts with customers	368,384	316,681	16,33%	693,376	641,673
Revenue by geographic market
North America	152,865	119,090	28,36%	258,116	224,341
APAC	85,526	73,140	16,93%	185,933	173,547
Europe and rest of the world	129,993	124,451	4,45%	249,327	243,785
Total revenue from contracts with customers	368,384	316,681	16,33%	693,376	641,673
Revenue by date for revenue recognition
Goods/services transferred at a point in time	211,505	181,194	16,73%	388,945	358,634
Services transferred over time	156,879	135,487	15,79%	304,431	283,039
Total revenue from contracts with customers	368,384	316,681	16,33%	693,376	641,673

NOTE 3 ESTIMATES

Preparation of the interim report requires that company management make estimates that affect the carrying amounts. The actual outcome could deviate from these estimates. The critical sources of uncertainty in the estimates are the same as those in the most recent Annual Report.

NOTE 4 FINANCIAL INSTRUMENTS

RaySearch's financial assets and liabilities comprise billed and unbilled receivables, cash and cash equivalents, accrued expenses, accounts payable, bank loans and lease liabilities. Long-term receivables and lease liabilities are discounted, while other financial assets and liabilities have short maturities. Accordingly, the fair values of all financial instruments are deemed to correspond approximately to their carrying amounts.

The provision for expected credit losses is a weighted assessment of payment history, reports from external credit rating agencies and other customer-specific information. At the end of June 2022, the credit loss provision amounted to SEK 37.9 M (26.7), corresponding to 11 percent (8) of total customer receivables. The Group's credit losses have historically been limited and amounted to about 0.7 percent of the company's average customer receivables over the past five years.

NOTE 5 RELATED-PARTY TRANSACTIONS

There were no transactions between RaySearch and related parties with any material impact on the company's position and earnings during the period.

NOTE 6 PLEDGED ASSETS IN THE GROUP AND PARENT COMPANY

AMOUNTS IN SEK 000s	Mar 31, 2022	Mar 31, 2021	Dec 31, 2021
Chattel mortgages	100,000	100,000	100,000
Guarantees	32,634	14,564	31,046

GROUP QUARTERLY OVERVIEW

	2022	2021					2020
AMOUNTS IN SEK 000s	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Order intake
Total order intake	212,511	272,442	345,028	127,853	189,750	145,131	239,125	138,480
Income statement
Net sales1	160,235	208,149	188,573	136,419	154,579	162,102	159,138	118,433
Change in sales, %1	3.7	28.4	18.5	15.2	-5.2	-22.1	-30.4	-14.4
Operating profit/loss1	-19,527	29,564	-16,578	-26,561	-22,463	12,261	-15,289	-30,174
Operating margin, %1	-12.2	14.2	-8.8	-19.5	-14.5	7.6	-9.6	-25.5
Profit/loss for the period1	-19,731	19,298	-15,968	-21,990	-16,467	7,110	-14,712	-26,730
Net margin, %1	-12.3	9.3	-8.5	-16.1	-10.7	4.4	-9.2	-22.6
Cash flow
Operating activities	79,778	125,787	28,397	47,356	58,077	104,332	51,505	78,486
Investing activities	-67,593	-60,551	-60,944	-45,569	-70,843	-60,275	-64,094	-45,372
Financing activities	4,500	-29,916	12,482	-11,875	-61,624	-11,217	-8,909	-11,394
Cash flow for the period	16,685	35,320	-20,065	-10,088	-74,390	32,840	-21,498	21,720
Capital structure
Equity/assets ratio, %1	35.2	37.5	36.0	54.6	55.7	50.9	52.2	55.0
Net debt	386,236	397,045	459,742	-52,983	-50,385	-65,952	-22,439	-31,476
Debt/equity ratio1	0.6	0.6	0.7	-0.1	-0.1	-0.1	0.0	0.0
Net debt/EBITDA	1.6	1.8	2.3	-0.3	-0.3	-0.4	-0.1	-0.1
Per share data, SEK
Earnings/loss per share before dilution1	-0.58	0.56	-0.47	-0.64	-0.48	0.21	-0.43	-0.78
Earnings/loss per share after dilution1	-0.58	0.56	-0.47	-0.64	-0.48	0.21	-0.43	-0.78
Equity per share1	18.42	18.91	18.33	18.77	19.39	19.88	19.64	20.09
Share price at the end of the period	54.40	51.70	56.50	61.50	87.40	89.50	82.70	87.50
Other
No. of shares before/after dilution, 000s	34,282.8	34,282.8	34,282.8	34,282.8	34,282.8	34,282.8	34,282.8	34,282.8
Average no. of employees	383	399	419	418	414	412	404	399

GROUP, ROLLING 12 MONTHS

	Jul 2021-	Apr 2021-	Jan 2021-	Oct 2020-	Jul 2020-	Apr 2020-	Jan 2020-	Oct 2019-
AMOUNTS IN SEK 000s	Jun 2022	Mar 2022	Dec 2021	Sep 2021	Jun 2021	Mar 2021	Dec 2020	Sep 2020
Order intake
Total order intake	957,845	935,073	807,762	701,859	712,486	699,868	854,755	892,846
Income statement
Net sales1	693,376	687,720	641,673	612,238	594,252	602,734	648,824	718,214
Operating profit/loss1	-33,102	-36,038	-53,341	-52,052	-55,665	-44,853	-6,254	25,532
Operating margin, %1	-4.8	-5.2	-8.3	-8.5	-9.4	-7.4	-1.0	3.6
Cash flow
Cash flow	21,852	-69,223	-72,380	-73,136	-41,328	98,972	61,890	91,165
Cash flow adjusted for repayment of bank loans	43,120	-47,955	-22,380	-23,136	8,672	98,972	61,890	91,165

1 See Note 1 for more information about correction of previous error.

DEFINITIONS OF KEY RATIOS

The interim report refers to a number of non-IFRS financial measures that are used to provide investors and company management with additional information to assess the company's operations. The various non-IFRS measures used to complement the IFRS financial statements are described below.

Non-IFRS measures	Definition	Reason for using the measure
Order intake	The value (transaction price) of all orders received and changes to	Order intake is an indicator of future revenue and thus a key figure
	existing orders during the current period	for the management of RaySearch's operations
Order backlog	The value of orders at the end of the period that the company has	The order backlog shows the value of orders already booked by
	yet to deliver and recognize as revenue, meaning remaining	RaySearch that will be converted to revenue in the future.
	performance obligations.
Net sales/Order intake	Recognized net sales in relation to total order intake during the	The measurement is used to monitor the recognized revenue in
	corresponding period	relation to sales, which is part of the reason for the change in order
		backlog.
Change in sales	The change in net sales compared with the year-earlier period	The measure is used to track the performance of the company's
	expressed as a percentage	operations between periods
Change in sales at	Change in sales at unchanged exchange rates, i.e. excluding	This measure is used to monitor underlying change in sales driven
unchanged currencies	currency effects	by alterations in volume, pricing and mix for comparable units
		between different periods
Gross profit	Net sales minus cost of goods sold	Gross profit is used to measure the margin before sales, research,
		development and administrative expenses
Operating profit/loss	Calculated as profit for the period before financial items and tax	Operating profit/loss provides an overall picture of the total
		generation of earnings in operating activities
Operating profit adjusted for	Calculated as operating profit less other operating	Operating profit provides an overall picture of the total generation of
currency translation effects	income/expenses	earnings in operating activities excluding currency translation effects for balance sheet items
Operating margin	Operating profit expressed as a percentage of net sales	Together with sales growth, the operating margin is a key element
		for monitoring value creation
Net margin	Profit for the period as a percentage of net sales for the period	The net margin shows the percentage of net sales remaining after
		the company's expenses have been deducted
Cash flow adjusted for	Cash flow for the period less cash flow from changes to bank loans	The measurement shows the underlying cash flow before financing
changes in bank loans		activities, but including amortization of lease liabilities.
Equity per share	Equity divided by number of shares at the end of the period	The measurement shows the return generated on the owners'
		invested capital per share
Rolling 12 months' sales,	Sales, operating profit or other results measured over the past 12-	This measure is used to more clearly illustrate the trends for sales,
operating profit or other	month period	operating profit and other results, which is relevant because
results		RaySearch's revenue is subject to monthly variations
Working capital	Working capital comprises inventories, operating receivables and	This measure shows how much working capital is tied up in
	operating liabilities, and is obtained from the statement of financial	operations and can be shown in relation to net sales to
	position. Operating receivables comprise accounts receivable,	demonstrate the efficiency with which working capital has been
	other current/long-term receivables and non-interest bearing	used
	prepaid expenses and accrued income. Operating liabilities include other non-interest bearing long-term liabilities, advance payments
	from customers, accounts payable, other current liabilities and
	non-interest bearing accrued expenses and deferred income.
Return on equity	Calculated as profit/loss for the period as a percentage of average	Shows the return generated on the owners' invested capital from a
	equity. Average equity is calculated as the sum of equity at the end	shareholder perspective
	of the period plus equity at the end of the year-earlier period,
	divided by two
Equity/assets ratio	Equity expressed as a percentage of total assets at the end of the	This is a standard measure to show financial risk, and is expressed
	period	as the percentage of the total restricted equity financed by the
		owners
Net debt	Interest-bearing liabilities less cash and cash equivalents	This measure shows the Group's total indebtedness
	and interest-bearing current and long-term receivables
Debt/equity ratio	Net debt in relation to equity	The measure shows financial risk and is used by management
		to monitor the Group's indebtedness
EBITDA	Operating profit before financial items, tax,	The measurement is a way to evaluate the result without taking into
	depreciation/amortization and impairment	consideration financial decisions or taxes
Net debt/EBITDA	Net debt at the end of the period in relation to operating profit	A relevant measure from a credit perspective that shows the
	before depreciation and amortization over the past 12-month	company's ability to handle its debt
	period

CALCULATION OF FINANCIAL MEASURES NOT INCLUDED IN THE IFRS FRAMEWORK

AMOUNTS IN SEK 000s		Jun 30, 2021	Dec 31, 2021
Working capital
Accounts receivable (current billed customer receivables)		202,060	170,591
Current unbilled customer receivables		70,730	146,771
Long-term unbilled customer receivables		7,979	10,204
Inventories	43,934	20,317	29,991
Other current receivables (excl. tax)		43,323	63,702
Accounts payable	-43,549	-32,049	-48,774
Other current liabilities (excl. tax)		-276,699	-367,212
Working capital	-51,215	35,661	5,273
AMOUNTS IN SEK 000s	Jun 30, 2022	Jun 30, 2021	Dec 31, 2021
Net debt
Current interest-bearing liabilities	52,678	26,731	70,381
Long-term interest-bearing liabilities	495,626	51,699	491,017
Cash and cash equivalents		-128,815	-102,535
Net debt	386,236	-50,385	459,742
AMOUNTS IN SEK 000s	JUL 2021 - JUN 2022	JUL 2021 - JUN 2022	Full-year 2021
EBITDA
Operating profit/loss1	-33,102	-55,665	-53,341
Amortization and depreciation	273,135	229,907	250,184
EBITDA	240,033	174,242	196,843
CHANGE IN SALES AT UNCHANGED CURRENCIES	JUL 2021 - JUN 2022	JUL 2021 - JUN 2022	Full-year 2021
Net sales for the year		594,252	641,673
Currency adjustment	-27,761	45,915	20,868
Adjusted Net sales		640,167	662,541
Net sales, preceding year		751,495	651,612
Change in sales at unchanged currencies (organic growth)	11,7%	-14.8%	1.7%

1 See Note 1 for more information about correction of previous error.

HEAD OFFICE

RaySearch Laboratories AB (publ) Box 45169 SE-104 30 Stockholm, Sweden

STREET ADDRESS

Eugeniavägen 18 C SE-113 68 Stockholm, Sweden Tel: +46 (0)8 510 530 00 raysearchlabs.com Corp. Reg. No. 556322-6157

ABOUT RAYSEARCH

RaySearch Laboratories AB (publ) is a medical technology company that develops innovative software solutions for improved cancer treatment. The company develops and markets the RayStation treatment planning system and RayCare oncology information system to cancer centers all over the world and distributes the products through licensing agreements with leading medical technology companies.

In December 2020, the RayCommand treatment control system and RayIntelligence oncology analytics system were also launched. RaySearch's software is currently used by over 800 clinics in more than 40 countries. The company was founded in 2000 as a spin-off from the Karolinska Institute in Stockholm and the share has been listed on Nasdaq Stockholm since 2003. More information about RaySearch is available at raysearchlabs.com.

VISION AND MISSION

The company's vision is a world where cancer is conquered and RaySearch's mission is to provide innovative software to continuously improve cancer treatment.

STRATEGY

A radiation therapy center essentially needs two software platforms for its operations: a treatment planning system, and an information system. With RayStation and RayCare, RaySearch will strengthen its position and continue to grow with high profitability. The company's strategy is based on a strong focus on innovative software development with leading functionality, support for efficient workflows – including via digitization and automation with machine learning – broad support for a wide range of treatment modes and radiation therapy devices, close collaboration with world-leading cancer centers and industrial partners, and extensive investment in research and development.

BUSINESS MODEL

RaySearch's main revenue is generated by customers paying an initial license fee for the right to use RaySearch's software and an annually recurring service fee for access to updates and support. All software systems are developed at RaySearch's head office in Stockholm, and distributed and supported by the company's global marketing organization.