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Biotage

Interim / Quarterly Report Jul 19, 2022

2894_ir_2022-07-19_08d4938c-1a2d-47c3-a18e-e847671725c3.pdf

Interim / Quarterly Report

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Biotage AB (publ)

Interim Report January - June 2022

HumanKind Unlimited

Increased sales for five consecutive quarters

April – June

  • » Net sales amounted to SEK 395 (303) million, an increase of 30.3 percent and an organic* increase of 14.4 percent.
  • » Operating profit amounted to SEK 93 (63) million and adjusted* to SEK 98 (63) million.
  • » The operating margin was 23.4 percent (20.6) and adjusted to 24.7 percent (20.6).
  • » EBITA* amounted to SEK 100 (65) million, and adjusted to SEK 105 (65) million.
  • » The EBITA margin* amounted to 25.2 percent (21.4) and adjusted to 26.5 percent (21.4).
  • » Profit after tax amounted to SEK 57 (46) million.
  • » Earnings per share were SEK 0.87 (0.71) before and SEK 0.87 (0.70) after dilution.
  • » Cash flow from operating activities decreased to SEK 88 (92) million.
  • » Net cash* as of June 30 was SEK 67 (61) million.
  • » A dividend of SEK 1.55 per share was paid for a total amount of SEK 102 million.

January – June

  • » Net sales amounted to SEK 781 (585) million, an increase of 33.5 percent and an organic* increase of 18.0 percent.
  • » Operating profit amounted to SEK 189 (142) million and adjusted* to SEK 199 (142) million.
  • » The operating margin was 24.2 percent (24.3) and adjusted to 25.5 percent (24.3).
  • » EBITA* amounted to SEK 203 (147) million, and adjusted to SEK 213 (147) million.
  • » The EBITA margin* amounted to 26.0 percent (25.1) and adjusted to 27.3 percent (25.1).
  • » Profit after tax amounted to SEK 129 (106) million.
  • » Earnings per share were SEK 1.95 (1.63) before and SEK 1.95 (1.62) after dilution.
  • » Cash flow from operating activities decreased to SEK 145 (160) million.
  • » On March 14, the Board decided on new financial goals: 12 percent organic growth and a 25 percent EBITA margin, both averaging over three years.

* See definitions on pages 20-21.

Financial overview

Second quarter Six-month period Full year
Amounts in SEK millions 4/1/2022
6/30/2022
4/1/2021
6/30/2021
1/1/2022
6/30/2022
1/1/2021
6/30/2021
1/1/2021
12/31/2021
Net sales 395 303 781 585 1,232
Change, % 30.3% 19.4% 33.5% 10.0% 12.7%
of which:
- Organic growth, % 14.4% 32.1% 18.0% 21.6% 17.5%
- Currency effects, % 12.6% -12.7% 11.5% -11.6% -5.7%
- Acquisitions/divestments, % 3.2% - 4.1% - 0.9%
Gross profit 240 182 481 360 755
Gross margin, % 60.6% 60.0% 61.6% 61.5% 61.3%
Operating profit (EBIT) 93 63 189 142 271
Operating margin (EBIT), % 23.4% 20.6% 24.2% 24.3% 22.0%
Adjusted operating profit (EBIT) 98 63 199 142 283
Adjusted operating margin (EBIT), % 24.7% 20.6% 25.5% 24.3% 23.0%
EBITA 100 65 203 147 284
EBITA margin, % 25.2% 21.4% 26.0% 25.1% 23.1%
Adjusted EBITA 105 65 213 147 296
Adjusted EBITA margin, % 26.5% 21.4% 27.3% 25.1% 24.0%
Profit for the period 57 46 129 106 205
Summa
Just EBITA
45 139
Summa
Just EBITA
45 139
Earnings per share, SEK
35 737
49 847
35 737
49 847
0.87
56 082
64 330
56 082
0.70
40 508
64 101
64 330
40 508
1.95
27 193
64 101
27 193
1.62
63 166
62 212
63 166
62 212
3.13
Adj EBITA margin Adj EBITA margin kv
19,4%
Cashflow from operating activities
Adj EBITA margin Adj EBITA margin kv
19,4%
15,2%
20,1%
88
15,2%
20,1%
19,9%
22,8%
92
19,9%
14,0%
23,1%
145
22,8%
14,0%
10,7%
160
23,1%
10,7%
24,1%
20,9%
353
24,1%
20,9%

EBITA margin kv 19,4% 15,2% 20,1% 19,9% 22,8% 14,0% 23,1% 10,7% 24,1% 20,8% 29,1% 21,4% 23,1% 18,7% 26,3% Net sales, SEK millions Adjusted EBITA, SEK millions

EBITA kv 45 139 35 737 49 847 56 082 64 330 40 508 64 042 27 190 63 403 62 083 81 979 64 865 70 565 63 806 101 374

Interim Report January - June 2022 | 3

Distribution of net sales

24% 4% 14% +126% +30% +30% n.a. +21% 3% 3% 15% 8% 24% 24% 0% 4% 14% 7% 303 395 +20% +126% +30% +30% n.a. +21% 3% 3% 15% 8% 24% 24% 0% 4% 14% 7% 303 395 +20% +126% +30% +30% n.a. +21%

Kvartal produktområde

Kvartal produktområde

+24%

48%

+24%

+24%

Growth

Growth

48%

Growth

48%

Q2 2021 Q2 2022

LTM produktområde

Kvartal produktområde

Q2 2021 Q2 2022

Kvartal produktområde

LTM produktområde

Q2 2021 Q2 2022

Kvartal produktområde

LTM produktområde

50%

50%

Last twelve months

Product areas Customer focus areas

Message from the CEO

Biotage's profitable growth journey continues in the second quarter. We are growing faster than the market, and once again breaking new sales records. We are also experiencing a good profit level.

Another quarter of record sales

Our net sales for the second quarter amounted to SEK 395 (303) million. A result of generally good performance throughout the Group, boosted by currency effects. I would also like to highlight how Biotage's adjusted EBITA margin over the past six months has been consistently above 24 percent. We have managed to maintain stable earnings growth despite the successive crises, continued challenges in the supply chain, and the fact that China has once again gone through extensive lockdowns in the fight against COVID-19.

Our continued success is largely due to our disciplined, smart and methodical approach to aspects of the business that we ourselves have control over. Even when the pandemic first broke out, our focus was on doing everything we could to continue to meet our customers' needs for products. The proactive structure we built at the time, with constant efforts to secure our supply chain, has enabled Biotage to manage the situation since then.

The implementation of our new, customer-focused specialist organization is proceeding according to plan and is appreciated by our customers. One step in the right direction: we now ensure that our innovation efforts meet customer needs by weaving customer input into our development process to find the best solution.

All three of our customer focus areas show double-digit growth compared to the same period last year: White Tech with customers in research, development and manufacturing of pharmaceuticals, Red Tech with a focus on diagnostic companies and clinical, forensic and doping laboratories, and Blue & Green Tech with a focus on environmental, water and food laboratories. In White Tech, success was noted in particular in purification and evaporation. The double-digit growth in Red Tech is driven by clinical testing in the Americas, and we are also experiencing a strong quarter in EMEA. Blue & Green Tech is driven by environmental and water testing in the Americas.

Geographically, Americas and China are standing out. The speed of sales in the US market continues, resulting in a fourth consecutive record quarter for the Americas. High system sales contribute strongly to the success, especially in the product segments Biologics & Advanced Therapeutics and Analytical Testing.

With regard to China, it is encouraging that we achieved strong growth during the quarter despite two months' lockdown in several regions, and restrictions in the supply chain. Sales successes in Flash systems, with a new quarterly record, are the main contributors to the positive development. Korea continues to show strong growth, as does EMEA, although the rapid expansion of vaccine production now looks set to enter a more balanced phase, which means that strong growth in the Scale Up product segment is slowing.

Overall, we have seen a strong development of our system sales during the quarter. Here too, we reap the rewards of proactiveness, in particular our investment in the innovative platform solution Biotage® PhyPrep, which is the first in the world to automate plasmid purification for maxi, mega and giga scales. Here we identified an attractive niche where there was a gap to streamline customer workflows. This deal has started to gain momentum, and we are scaling up for further growth.

The new evaporation system Biotage® TurboVap 96 Dual, which streamlines customer workflows and helps to reduce solvent use, has also become a sales success. During the quarter, we launched two more products to help customers streamline their workflows in a similar way, while maintaining or improving environmental considerations: Biotage® Extrahera HV-5000 and Biotage® Selekt Enkel. At the same time, our work to reduce solvent use at our manufacturing facility in Cardiff is progressing. Thanks to an improved innovative production process, we are working towards a significant reduction in the use of solvents in production this year.

Committed employees are the key to success. It has always been my conviction that companies in which people thrive are companies that do well. We are therefore committed to constantly developing leadership at Biotage, and building a strong, positive and inclusive corporate culture. At the same time, we offer employees the opportunity to strengthen their skills in our Biotage Academy, and simplify their daily work by implementing effective digital tools, such as CRM and sales support, throughout the organization. We did this in China and Korea during the past quarter. Our annual employee engagement survey shows that we maintain a high level, with a high response rate. We strive to improve every day, in line with our ambition to be an attractive employer for current as well as future employees.

Our ongoing commitment to help put Swedish life sciences on the world map is reflected in our participation in the Vinnova-funded and KTH-coordinated GeneNova consortium, whose aim it is to improve the efficiency of the production of gene therapy for individualized treatment. During the quarter, Biotage had the pleasure of hosting the first in-person meeting of representatives of the consortium participants.

I note that we have achieved a very strong first half of the year in financial terms, despite the inflation crisis and the pressure in the supply chain. The fact that we have succeeded in defending our gross margin and cash flow, as well as strengthening our balance sheet, has put us in a very good position. It allows us to invest further in attractive niches with recurring sales, hence I look to the future with a positive mindset.

Uppsala, July 19, 2022

Tomas Blomquist President and CEO

Sales, earnings, cash flow and financial position

Net sales and earnings

Net sales for the quarter amounted to SEK 395 (303) million, an increase of 30.3 percent with an organic growth of 14.4 percent. Americas was the largest market, with 40 (38) percent of net sales. EMEA accounted for 28 (30) percent and APAC for 32 (32) percent.

Net sales for the six-month period amounted to SEK 781 (585) million, an increase of 33.5 percent and an organic growth of 18.0 percent.

The Group's gross margin for the quarter increased by 0.6 percentage points to 60.6 percent (60.0). Sales were distributed as follows: system sales 48 (48) percent and aftermarket products (consumables and service) 52 (52) percent. The gross margin for the six-month period increased by 0.1 percentage points to 61.6 (61.5) percent.

Operating expenses for the quarter amounted to SEK -147 (-120) million, an increase of SEK 27 million. Distribution costs increased by SEK 29 million to SEK -96 (-67) million. Administrative expenses increased by SEK 7 million to SEK -35 (-28) million. Research and development expenses increased by SEK 2 million to SEK -25 (-23) million. Other operating items for the quarter were SEK 9 (-2) million and consist primarily of currency effects on operating liabilities and receivables.

Operating expenses for the six.month period amounted to SEK -292 (-218) million, an increase of SEK 74 million. Distribution costs increased by SEK 57 million to SEK -187 (-130) million, mainly due to increased activity due to markets opening again after shutdowns during the pandemic. Administrative expenses increased by SEK 14 million to SEK -66 (-52) million. Research and development expenses increased by SEK 7 million to SEK -49 (-42) million. Other operating items for the were SEK 10 (6) million and consist primarily of currency effects on operating liabilities and receivables.

Operating profit for the quarter increased by SEK 30 million to SEK 93 (63) million and the operating margin (EBIT) increased by 2.8 percentage points to 23.4 (20.6) percent. Operating profit for the six-month period increased to SEK 189 (142) million and the operating margin (EBIT) amounted to 24.2 (24.3) percent. Adjusted operating profit, operating profit adjusted for transaction costs and costs related to an additional purchase consideration relating to ATDBio, Ltd., amounted to SEK 98 (63) milllion and the adjusted operating margin amounted to 24.7 percent (20.6) for the quarter. For the half-year period, the corresponding values were SEK 199 (142) million and 25.5 (24.3) percent, respectively.

EBITA for the quarter amounted to SEK 100 (65) million. Adjusted EBITA amounted to SEK 105 (65) million for the quarter. For the half-year period, the corresponding values were SEK 203 (147) million and SEK 213 (147) million, respectively. See also Note 2.

Net financial items for the quarter amounted to SEK -18 (-2) million, and consisted primarily of interest expenses and currency effects from long-term intra-Group balances. Six-month financial net was SEK -21 (-4) milion.

Profit after tax for the quarter increased by SEK 11 million to SEK 57 (46) million. Recognized tax expense increased to SEK -18 (-15) million. Profit after tax for the six-month period increased to to SEK 129 (106) million. Recognized tax expense for the six-month period increased to SEK -39 (-32) million.

Cash flow

Cash flow from operating activities for the quarter decreased by SEK 4 million to SEK 88 (92) million, primarily because of increasing accounts receviable and increase in inventoruies, while being positively impacted by increasing accounts payable. Cash flow from operating activities for the six-month period decreased by SEK 15 million to SEK 145 (160) million.

Investments for the quarter amounted to SEK 18 (16) million and for the six-month period to SEK 32 (35) million. Investments in property, plant and equipment were SEK 9 (6) million for the quarter, and SEK 15 (13) million for the six-month period, mostly investments into production facilitites in Cardiff, UK.

Investments in intangible assets were SEK 9 (10) million for the quarter and SEK 16 (21) million for the six-month period. Capitalized development expenses accounted for SEK 9 (8) million of the investments in intangible assets during the quarter and SEK 6 (6) million of amortization. Corresponding amounts for the half-year period were SEK 15 (19) million in invetsments and SEK 11 (11) million of amortizations.

Total depreciation and amortization for the quarter was SEK 26 (19) million, with SEK 4 million attributable to property, plant and equipment; SEK 6 million to amortization on rights-of-use assets and SEK 16 million to intangible assets. Total depreciation and amortization for the six-month period was SEK 49 (36) million, with SEK 9 million attributable to property, plant and equipment; SEK 12 million to amortization on rights-of-use assets, and SEK 28 million to intangible assets.

Balance sheet items

The Group's cash & cash equivalents on June 30 were SEK 312 (311) million. Interest-bearing liabilities relate to borrowings of SEK 150 (150) million under a credit facility arranged in 2018, lease liabilities of SEK 44 (53) million, an estimated additional consideration of SEK 50 (46) million for the acquisition of PhyNexus, Inc. and other financial liabilities of SEK 1 (2) million. The net cash position was SEK 67 (61) million.

The Group's total goodwill on June 30 amounted to SEK 776 (741) million, and is the result of acquisitions from 2010 onwards. The change is wholly attributable to exchange rate differences.

Capitalized development expenses amounted to SEK 131 (128) million and other intangible assets, mainly identified surplus values related to acquisitions, amounted to SEK 184 (185) million.

Equity amounted to SEK 1,481 (1,371) million on June 30. The change in equity is mainly attributable to net profit of SEK 129 million, currency effects of SEK 76 million on the translation of foreign subsidiaries, and dividend paid to the shareholders.

Balance sheet items in parentheses refer to figures on December 31, 2021.

Human resources

The Group had 499 employees (full-time equivalents) on June 30, compared with 469 one year earlier, and 497 on December 31, 2021.

Parent company

The Group's Parent Company, Biotage AB, has whollyowned subsidiaries in Sweden, the US, the UK, Germany, France, Italy, Switzerland, Japan, China, South Korea, India, and Singapore. The Parent Company is responsible for Group management, strategic business development and administrative functions at the Group and subsidiary levels.

The Parent Company's net sales for the quarter amounted to SEK 2 (1) million. Operating expenses were SEK -9 (-7) million. Operating loss was SEK -7 (-6) million. The six-month revenue was SEK 3 (2) million and operating profit was SEK -13 (-9) million.

The Parent Company's net financial items for the quarter amounted to SEK 348 (6) million and consisted mainly of dividends from subsidiaries. The six-month financial net was SEK 350 (13) million.

Recognized tax for the quarter amounted to SEK -1 (+2) million and SEK 0 (+1) million for the six-mont period. Profit after tax amounted to SEK 340 (2) million for the quarter. and 337 (5) for the six-month period.

Investments in intangible assets amounted to SEK 0 (0) million for the quarter and SEK 1 (1) million for the six-month period. Cash and bank balances on June 30 were SEK 1 (2) million.

Annual general meeting

The resolutions of the Annual General Meeting on April 28, 2022 were as follows:

  • » Adoption of the income statements and balance sheets for 2021 for the Parent Company and Group.
  • » Dividend of SEK 1.55 per share (record date May 2, 2022).
  • » Discharge from liability for Board members and the CEO for the 2021 fiscal year.
  • » Re-election of Board members Torben Jørgensen, Peter Ehrenheim, Karolina Lawitz,

Åsa Hedin, and Mark Bradley, and election of new board member Karen Lykke Sørensen.

  • » Appointment of Torben Jørgensen as Chairman of the Board.
  • » Re-election of Öhrlings PricewaterhouseCoopers AB as the Company's auditor, with Leonard Daun as chief auditor.
  • » Adoption of the nomination committee's proposals for fees paid to the Board, audit and remuneration committee members and the Company's auditors.
  • » The nomination committee shall consist of three members: one representative appointed by each of the three largest shareholders. The Chairman of the Board shall be adjunct to the nonmination committee.
  • » Approval of the remuneration report.
  • » Authorization for the Board of Directors to decide on one or more share issues.
  • » Adoption of LTIP (long-term incentive program), including an authorization to issue C shares and subsequently repurchase them for LTIP purposes.

Further information can be found in the report from Biotage AB's Annual General Meeting at www.biotage.com

Significant events during the reporting period

On March 14, the Board decided on new financial goals: 12 percent organic growth and a 25 percent EBITA margin, both averaging over three years.

Significant events after the end of the reporting period

No significant events have taken place since the end of the reported period.

Risks and uncertainties

As an international Group, Biotage is exposed to various risks that affect its ability to achieve defined targets. These include operational risks, such as the risk of competitive situations affecting price levels and sales volumes, and the risk of economic instability in the markets and areas where the Group operates. There are also financial risks, which include currency risks, interest rate risks and credit risks.

There has been no significant change in material risks or uncertainties during the period, apart from the factors related to the coronavirus pandemic, and Russia's invasion of Ukraine, described below. Other risks are unchanged from the section on Biotage's risks, uncertainties and risk management in the Company's 2021 annual report.

Coronavirus pandemic (COVID-19)

The continuing global spread of the coronavirus pandemic (COVID-19) and lack of availability of vaccines are of concern to the global community. Uncertainty about the duration and intensity of the virus outbreak continues to make its effects difficult to assess.

Biotage is taking action to meet the challenges and risks associated with the coronavirus pandemic, while also seeking to maintain the momentum of its business activities.

Use of modern communication technology has mitigated the impact of not being able to visit customers for sales and service. The reduction in travel has also brought cost savings and resulted in a lower environmental footprint. It is not inconceivable that these more positive effects may change how we use our resources in the long term.

The recovery continued during the quarter in many regions. The exception has been China, where new shutdowns have had a negative effect on the Group's operations during

the quarter, but the operations have been able to resume towards the end. As has been shown on several occasions, it is still too early to determine at what point the situation is normalized.

Several Biotage customers are participating in research and development of coronavirus analyses, vaccines and treatment. This has enabled Biotage to maintain operations in a number of countries, despite extensive government restrictions. Biotage has also seen demand for parts of the product range increase as a consequence of the coronavirus pandemic.

Disruptions in the production chain have been significant, but have for the most part been successfully managed, although at high cost. This situation may obviously change, both in terms of availability of the necessary production resources and more severe disruptions to the transport chain if the coronavirus pandemic continues, which we have seen indications of during the quarter.

If the financial position of our customers weakens, this may also affect Biotage in terms of their ability to pay, which could lead not only to longer payment periods but also to eventual credit losses. Biotage has not been affected in this respect so far.

Biotage has a strong financial position, but if the pandemic's course is protracted, it may have an adverse effect on financially strong companies like Biotage. Biotage works actively to maintain good payment order for its trade receivables. However, it is still too early to draw any conclusions about credit losses and impairment due specifically to the coronavirus pandemic. The same applies to general impairment of other asset classes. No general impairment due to the coronavirus pandemic has been identified to date.

Biotage has not made any staff reductions or lay-offs as a result of the coronavirus pandemic. Biotage has also not participated in any support programs other than reduced employer contributions in Sweden, China, the UK and other countries.

The business is expected to gradually return to normal, but it is not possible to assess at what time.

Russia's invasion of Ukraine

Biotage is only affected to a lesser extent by the war in Ukraine in the short term, but it is too early to make a qualified assessment of the impact in the longer term. The war affects the global supply chain in general and it is likely that Biotage may also be affected.

Related-party transactions

There were no significant transactions during the period other than transactions between subsidiaries and remuneration of senior executives of the Group and Parent Company. The amounts are essentially the same as in the most recent annual report.

Forward-looking information

This report contains forward-looking information based on management's current expectations. Although management believes that the expectations reflected in this forward-looking information are reasonable, no assurance can be given that these expectations will prove to be correct. Actual future outcomes may consequently vary significantly from those contained in this forwardlooking information due to factors such as changes to economic, market and competitive conditions, amended legal and regulatory requirements, other policy measures and exchange rate fluctuations.

Audit review

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

Biotage's financial goals

  • » Average annual organic growth of 12 % over a three-year period. Outcome: 11.0 % on June 30, 2022.
  • » Average annual EBITA margin of 25 % over a three-year period. Outcome: 21.9 % on June 30, 2022.

General information

Unless otherwise indicated in this interim report, the Group is referred to.

Figures in parentheses indicate the outcome for the corresponding period in the previous year, apart from balance sheet items where they refer to the value on December 31 of the previous year. Unless otherwise stated, amounts are presented in SEK millions.

Calendar

All financial reports are published on www.biotage.com

Interim Report January-September 2022 November 2, 2022
Year-end Report 2022 February 15, 2023

The Board of Directors and the CEO certify that the interim report provides a true and fair overview of the parent company's and the Group's operations, financial position and result and describes the significant risks and uncertainties faced by the parent company and the companies included in the Group.

Uppsala, July 19, 2022

Tomas Blomquist President and CEO

Torben Jørgensen
Chariman of the board
Mark Bradley
Board member
Åsa Hedin
Board member
Peter Ehrenheim
Board member
Karen Lykke Sørensen
Board member
Karolina Lawitz
Board member

Dan Menasco Employee representative Patrik Servin

Employee representative

For further information

Tomas Blomquist, President and CEO phone: +46 705 23 01 63

Maja Nilsson, CFO phone: +46 733 25 51 70

This information is information that Biotage AB (publ) is required to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act.

The information was submitted for publication, through the agency of the contact persons set out above, on July 19, 2022 at 13.00 CET.

Consolidated financial statements

Consolidated statement of comprehensive income

SEK Millions 4/1/2022
6/30/2022
4/1/2021
6/30/2021
1/1/2022
6/30/2022
1/1/2021
6/30/2021
1/1/2021
12/31/2021
Net sales 395 303 781 585 1,232
Cost of sales -155 -121 -300 -225 -477
Gross profit 240 182 481 360 755
Distribution costs -96 -67 -187 -130 -287
Administrative expenses -35 -28 -66 -52 -116
Research & development
expenses
-25 -23 -49 -42 -91
Other operating items 9 -2 10 6 11
Total operating
expenses
-147 -120 -292 -218 -483
Operating profit 93 62 189 142 271
Net financial items -18 -2 -21 -4 -2
Profit before tax 75 60 168 138 270
Income tax -18 -14 -39 -32 -65
Profit for the period 57 46 129 106 205
4/1/2022
6/30/2022
4/1/2021
6/30/2021
1/1/2022
6/30/2022
1/1/2021
6/30/2021
1/1/2021
12/31/2021
Average number of shares
outstanding
65,983,775 65,201,784 65,983,775 65,201,784 65,355,239
Average number of shares
outstanding after dilution
due to outstanding share
programs
66,157,817 65,267,366 66,171,244 65,248,893 65,464,807
Ordinary shares
outstanding at the
reporting date
65,983,775 65,201,784 65,983,775 65,201,784 65,983,775
Earnings per share for the
period
0.87 0.71 1.95 1.63 3.13
Diluted earnings per share
for the period
0.87 0.70 1.95 1.62 3.13

OTHER COMPREHENSIVE INCOME

Items that may be reclassified to profit or loss for the year:
Exchange differences
from translation of foreign
subsidiaries
67 -12 76 20 67
Total other
comprehensive income
67 -12 76 20 67
Total comprehensive
income for the period
124 34 205 126 272
Profit for the period
attributable to owners of
the Parent
57 46 129 106 205
Total comprehensive
income for the period
attributable to owners of
the Parent
124 34 205 126 272

Consolidated statement of financial position

Amounts in SEK millions 6/30/2022 12/31/2021
ASSETS
Non-current assets
Goodwill 776 741
Capitalized development expenditure 131 128
Other intangible assets 184 185
Right-of-use assets 43 52
Property, plant and equipment 84 76
Financial assets 15 14
Deferred tax asset 22 22
Total non-current assets 1,256 1,218
Current assets
Inventories 288 237
Trade receivables 263 180
Other receivables 39 46
Cash and cash equivalents 312 311
Total current assets 902 774
TOTAL ASSETS 2,158 1,992
Amounts in SEK millions 6/30/2022 12/31/2021
EQUITY AND LIABILITIES
Capital and reserves attributable to equity holders of the parent company
Share capital 92 92
Reserves and other contributed capital 299 216
Retained earnings 1,090 1,063
Total equity 1,481 1,371
Non-current liabilities
Liabilities to credit institutions 150 150
Lease liabilities 22 30
Other interest-bearing liabilities 49 45
Deferred tax liability 75 73
Non-current provisions 10 10
Total non-current liabilities 306 308
Current liabilities
Accounts payables 75 56
Lease liabilities 22 23
Other financial liabilities 2 2
Other liabilities 269 229
Current provisions 3 3
Total current liabilities 371 313
TOTAL EQUITY AND LIABILITIES 2,158 1,992

Condensed consolidated statement of changes in equity

Other paid-in Translation Retained
Amounts in SEK millions Share capital capital reserve earnings Total equity
OPENING BALANCE JANUARY 1, 2021 91 60 -117 956 990
Changes in equity between January 1 and December 31, 2021
Total comprehensive income for the period - - 67 205 272
Total changes during the period, excluding transactions with owners of the Parent - - 67 205 272
Transactions with owners of the Parent
New share issue 1 200 - - 201
Dividend to shareholders of the Parent - - - -98 -98
Share-based compensation - 6 - - 6
Share buy-back, Parent company - - - -0 -0
Closing balance December 31, 2021 92 266 -50 1,063 1,371
CHANGES IN EQUITY BETWEEN JANUARY 1 AND JUNE 30, 2021
Total comprehensive income for the period - - 20 106 126
Total changes during the period excluding transactions with owners of the Parent - - 20 106 126
Transactions with owners of the Parent
Dividend to shareholders of the Parent - - - -98 -98
Share-based compensation - 2 - - 2
Closing balance June 30, 2021 92 269 -40 1,134 1,455
CHANGES IN EQUITY BETWEEN JANUARY 1 AND JUNE 30, 2022
Total comprehensive income for the period - - 76 129 205
Total changes during the period excluding transactions with owners of the Parent - - 76 129 205
Transactions with owners of the Parent
Dividend to shareholders of the Parent - - - -102 -102
Share-based compensation - 6 - - 6
Closing balance June 30, 2022 92 272 27 1,090 1,481

Condensed consolidated statement of cash flows

Amounts in SEK millions 4/1/2022
6/30/2022
4/1/2021
6/30/2021
1/1/2022
6/30/2022
1/1/2021
6/30/2021
1/1/2021
12/31/2021
OPERATING ACTIVITIES
Profit before tax 75 61 167 138 269
Adjustments for non-cash items 44 18 72 33 78
119 78 239 171 347
Income tax paid -11 -4 -27 -9 -16
Cash flow from operating activities before changes in working capital 108 74 212 162 332
CASH FLOW FROM CHANGES IN WORKING CAPITAL
Increase (-)/decrease (+) in inventories -29 -6 -33 -28 -54
Increase (-)/decrease (+) in operating receivables -44 13 -66 2 16
Increase(+)/decrease (-) in operating liabilities 52 11 31 23 60
Cash flow from changes in working capital -20 18 -68 -2 21
CASH FLOW FROM OPERATING ACTIVITIES 88 92 145 160 353
INVESTING ACTIVITIES
Acquisition of intangible assets -9 -10 -16 -21 -33
Acquisition of property, plant and equipment -9 -6 -15 -13 -23
Acquisition of financial assets 0 -0 -1 -1 -2
Acquisition of subsidiaries, net of cash - - - - -282
Cash flow from investing activities -18 -16 -32 -35 -341
FINANCING ACTIVITIES
Dividend to shareholders -102 -98 -102 -98 -98
Subscription of new loans - - - - 150
Repayment of borrowings -11 -121 -17 -126 -134
Cash flow from financing activities -113 -219 -119 -224 -82
Cash flow for the reporting period -43 -143 -7 -98 -69
Cash and cash equivalents at beginning of period 349 422 311 371 371
Exchange differences 6 -1 8 6 9
Cash and cash equivalents at end of reporting period 312 279 312 279 311
Adjustments for non-cash items
Depreciation and impairment 26 19 49 36 75
Translation differences 14 4 16 -4 4
Value adjustment, additional consideration - 0 - -26 -9
Other items 4 -5 7 27 9
Total 44 18 72 33 78

Condensed income statement, Parent Company

Amounts in SEK millions 4/1/2022
6/30/2022
4/1/2021
6/30/2021
1/1/2022
6/30/2022
1/1/2021
6/30/2021
1/1/2021
12/31/2021
Net sales 2 1 3 2 4
Administrative expenses -8 -6 -15 -9 -21
Research & development expenses -1 -1 -1 -2 -3
Other operating items - - - - -1
Operating expenses, net -9 -7 -16 -11 -25
Operating profit -7 -6 -13 -9 -21
Profit/loss from financial investments
Interest income on receivables from group companies 1 1 1 1 3
Profit/loss from investments in subsidiaries 338 9 338 9 8
Other interest and similar income 14 2 29 11 22
Interest and similar expense -5 -6 -18 -8 -16
Group contributions received - - - - 29
Net financial items 348 6 350 13 46
Profit/loss after financial items 341 - 337 4 25
Appropriations - - - - 5
Income tax -1 2 0 1 -4
Profit/loss for the reporting period 340 2 337 5 26
STATEMENT OF COMPREHENSIVE INCOME, PARENT COMPANY
Profit/loss for the reporting period 340 2 337 5 26
Other comprehensive income
Items that may be reclassified to profit or loss for the year 340 2 337 5 26
Comprehensive income for the reporting period 340 2 337 5 26

Balance sheet, Parent Company

Amounts in SEK millions 6/30/2022 12/31/2021
ASSETS
Non-current assets
Intangible assets
Patents and licenses 13 13
Total intangible assets 13 13
Financial assets
Investments in Group companies 1,134 1,134
Receivables from Group companies 148 131
Other financial assets 10 10
Total financial assets 1,292 1,275
Total non-current assets 1,305 1,288
Current assets
Current receivables
Receivables from Group companies 3 1
Other receivables 1 8
Prepaid expenses and accrued income 1 2
Total current receivables 2 10
Cash and bank balances 1 2
Total current assets 3 12
Total assets 1,311 1,301
Amounts in SEK millions 6/30/2022 12/31/2021
EQUITY, PROVISIONS AND LIABILITIES
Equity
Restricted equity
Share capital 92 92
Total restricted equity 92 92
Unrestricted equity
Other paid-in capital 258 258
Retained earnings 359 429
Profit/loss for the reporting period 337 26
Total unrestricted equity 954 713
Total equity 1,046 805
Untaxed reserves 3 3
Non-current liabilities
Liabilities to credit institutions 150 150
Other non-current liabilities 58 56
Total non-current liabilities 208 206
Current liabilities
Trade payables 1 3
Liabilities to Group companies 38 257
Current tax liabilities 1 11
Other current liabilities 5 5
Accruals and deferred income 9 11
Total current liabilitites 54 286
Total equity and liabilities 1,311 1,301

Key figures and ratios

2022 2021 2020
Amounts in SEK millions Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2
Net Sales 395 386 341 305 303 281 298 263 254
Growth in net sales, % 30.3% 37.0% 14.5% 16.3% 19.4% 1.4% 3.3% -7.1% -9.9%
Organic growth, % 14.4% 21.9% 10.0% 17.8% 32.1% 12.0% 10.0% -2.7% -12.1%
Gross profit 240 241 212 183 182 177 179 161 154
Gross margin, % 60.6% 62.5% 62.1% 60.0% 60.0% 63.1% 59.9% 61.1% 60.6%
Operating profit 93 96 61 68 63 79 60 61 24
Operating margin, % 23.4% 24.9% 18.0% 22.3% 20.6% 28.2% 20.0% 23.1% 9.6%
Profit for the period 57 71 46 53 46 60 44 37 32
Profit margin, % 14.5% 18.4% 13.4% 17.4% 15.1% 21.3% 14.9% 14.2% 12.7%
Total Assets 2,158 2,056 1,992 1,503 1,407 1,576 1,434 1,420 1,387
Net cash(+)/net debt(-), SEK millions 67 103 61 244 161 190 157 90 32
Equity/Assets ratio, % 68.6% 70.8% 68.9% 72.5% 72.5% 68.7% 69.0% 69.6% 69.4%
Cash flow from operating activities, SEK/share 1.25 0.86 1.57 1.37 1.41 1.04 1.34 1.13 0.87
Average number of employees 493 496 497 478 469 462 463 466 467
Return on equity, % 18.2% 17.0% 17.3% 19.6% 19.0% 17.1% 18.8% 16.1% 20.5%
Return on capital employed, % 10.6% 12.8% 18.6% 25.2% 26.4% 23.2% 23.7% 21.6% 23.3%
Return on total assets, % 8.5% 10.6% 15.4% 20.9% 22.0% 19.5% 20.0% 18.3% 19.9%
Earnings, SEK/share 0.87 1.08 0.69 0.81 0.71 0.92 0.68 0.57 0.49
Earnings after dilution, SEK/share 0.87 1.08 0.69 0.81 0.70 0.92 0.68 0.57 0.49
Stock market price at end of period, SEK/share 181 220.2 262.0 239.4 202.6 154.0 139.0 177.3 139.3
Equity, SEK/share 22.44 22.05 20.83 16.71 15.64 16.60 15.18 15.17 14.76
Equity after dilution, SEK/share 22.39 21.98 20.77 16.68 15.62 16.59 15.18 15.17 14.76
Weighted average number of shares, thousands 65,984 65,984 65,822 65,202 65,202 65,202 65,202 65,202 65,202
Weighted average number of shares after dilution, thousands 66,158 66,185 66,015 65,345 65,267 65,230 65,222 65,208 65,202
Total number of shares outstanding at end of the period, thousands 65,984 65,984 65,984 65,202 65,202 65,202 65,202 65,202 65,202

See definitions in Note 2 and in the 2021 Annual Report, pp 104-106.

Notes

Note 1 Accounting policies

Biotage's consolidated financial statements are based on International Financial Reporting Standards as adopted by the EU. The interim report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities. The Group and the Parent Company have applied the same accounting policies and calculation methods in the interim report as in the most recent annual report. Disclosures in accordance with IAS 34 Interim Financial Reporting are provided in the notes and elsewhere in the interim report. Amended and new standards and interpretations from the IASB and IFRS Interpretations Committee that are effective for the 2022 fiscal year have not had any impact on the Group's financial reporting. Amendments to RFR2 that have come into force and are effective on or after January 1, 2022 have not had any material impact on the Parent Company's financial statements.

When preparing the interim reports for the Group and Parent Company, the same accounting policies and calculation methods have been used as in Biotage's 2021 annual report. The accounting policies are described on pages 63-78 of the annual report. For balance sheet items, figures in parentheses refer to the value at the end of the previous fiscal year, December 31, 2021. For income statement and cash flow items, figures in parentheses refer to the corresponding period in the previous year.

Fair value

Additional consideration

Biotage has a financial liability in connection with an additional consideration for an acquisition, which is measured at fair value through profit or loss. The additional consideration, attributable to the acquisition of PhyNexus Inc., is based on the agreed allocation of gross profit on related products during the period 2019 to 2023. The agreement with the sellers does not include a maximum amount.

The company's best assessment of fair value on the balance sheet date is shown in the table below. The fair value calculations are based on level 3 of the fair value hierarchy, which means that the fair value was determined on the basis of a valuation model using significant inputs that are unobservable. Valuation was based on expected future cash flows, discounted using a market interest rate.

If sales in the forecast period were to be 10 percent higher than estimated, this would mean a higher provision of 15 percent.

3/31/2021 12/31/2021
Additional consideration, non
current portion
48 44
Additional consideration, current
portion
2 2
Total 50 46
Opening value, January 1, 2022 46
Value adjustment -
Translation differences 6
Settled during the year -2
Closing balance, June 30, 2022 50

Other financial assets

Biotage has a financial asset in the form of shares in Chreto ApS, reported as financial assets at fair value. The holding has been allocated to level 2 of the fair value hierarchy on the basis that issue prices during the fourth quarter of 2021 are observable market data. At June 30, the shares were valued at the last known transaction price, which is the same price as on the previous reporting date.

A fair value calculation based on discounted future cash flows, for which the most significant input is a discount rate that reflects the counterparty's credit risk, is not expected to differ significantly from the carrying amount of other financial assets and current financial liabilities measured at amortized cost. Consequently, the carrying amounts of these financial assets and liabilities are considered to represent a good approximation of the fair values. Further information about financial assets and liabilities and their classification can be found in note 19 and 20 of the 2021 Annual Report.

Performance share program

In accordance with a resolution of the AGM, Biotage has adopted long-term incentive programs in the form of performance-based share programs ("LTIP 2020" and "LTIP 2021") for employees of the Biotage Group. Both LTIP 2020 and LTIP 2021 include the CEO, senior executives and other key personnel, meaning that a maximum of 18 individuals within the Biotage Group will be eligible to participate. For further information on LTIP 2020 and LTIP 2021, see the 2021 Annual Report.

Changes in number of performance shares:

Number of performance LTIP LTIP LTIP
shares 2020 2021 2022
Opening balance January 1,
2022
127,819 151,599
Allotted performance shares - - 168,926
Cancelled performance shares - - -
Closing balance June 30, 2022 127,819 151,599 168,926

Terms of LTIP 2021

Allotment of performance shares requires that the participant remains in his/her employment for three years from the allotment date. In addition to the requirement for the participant's continued employment, the final number of performance shares that each participant is entitled to receive is settled based on the following performance terms:

Performance term 1: 50 percent of the performance shares if the total return of the company's ordinary share amounts to or exceeds 64.3 percent in the period June 2022 – May 2025, however, at least 26 percent is required for the allotment to take place. Total return refers to return to shareholders in the form of price increase and reinvestment of any dividends during the vesting period.

Performance term 2: 25 percent of the performance shares if the average adjusted operating margin amounts to or exceeds 25 percent in 2021-2023 (calendar years), however, at least 22 percent is required for allotment to take place.

Performance term 3: 25 percent of the performance shares if the average organic sales growth amounts to or exceeds 15 percent in 2021-2023 (calendar years), however, at least 11 percent is required for allotment to take place.

For further information on the rights, see the Annex to the General Meeting Protocol at the company's website.

The rights related to Performance term 1 are valued according to the Monte Carlo model with an expected volatility of 37.5 percent and an interest rate of 1.58 percent. This gives a value of SEK 84.82. The rights related to Performance terms 2 and 3 are valued on the basis of the current share price less forecast dividend during the vesting period. This gives a value of SEK 184.31.

Scope and costs of the LTIP programmes

Nine participants, including the CEO, have been awarded a total of 127,819 rights to performance shares under the LTIP 2020 program. All senior executives are included in the program. Eleven participants, including the CEO, have been awarded a total of 151,599 rights to performance shares under the LTIP 2021 program. 13 participants, including the CEO, have been awarded a total of 168,926 rights to performance shares under the LTIP 2022 program. All programs are reported in accordance with IFRS 2, which means that the rights are measured on the grant date at the fair value of allotted equity instruments.

The cost of LTIP 2020 for the quarter amounted to SEK 1 million, including social security contributions. The estimated maximum total cost of LTIP 2020 is SEK 24 million. The cost of LTIP 2021 for the quarter amounted to SEK 2 million, including social security contributions. The estimated maximum total cost of LTIP 2021 is SEK 30 million. The cost of LTIP 2022 for the quarter amounted to SEK 1 million, including social security contributions. The estimated maximum total cost of LTIP 2022 is SEK 30 million.

Effects on key figures and dilution

In order to secure the allotment of ordinary shares in Biotage to participants in LTIP 2020, Biotage issued and repurchased 243,313 C shares in 2020. There has been a corresponding issue and repurchase of 243,313 Class C shares during t2021 to secure the allotment to participants in LTIP 2021. Further information about the terms and conditions of the Class C shares can be found in the appendix to the minutes of the respective AGM on the Biotage website.

On maximum allotment of performance shares under LTIP 2020, 127,819 ordinary shares will be allotted to participants and 40,161 ordinary shares will be used to cover any social security contributions associated with the program. This will have a dilutive effect of about 0.24 percent of the number of ordinary shares in the Company. On maximum allotment of performance shares under LTIP 2021, 151,599 ordinary shares will be allotted to participants and 47,130 ordinary shares will be used to cover any social security contributions associated with the program. This will have a dilutive effect of about 0.31 percent of the number of ordinary shares in the Company. On maximum allotment of performance shares under LTIP 2021, 196,183 ordinary shares will be allotted to participants and 47,130 ordinary shares will be used to cover any social security contributions associated with the program. This will have a dilutive effect of about 0.37 percent of the number of ordinary shares in the Company.

The average number of shares after dilution is affected by the estimated allotment of shares as of June 30. However, this does not have any material effect on earnings per share before and after dividends.

A list of definitions of key figures and performance measures reported in the consolidated financial statements can be found in Note 32 of the 2021 Annual Report.

Alternative performance measures

In this report, Biotage presents information used by management to assess the Group's performance. Some of the financial measures presented are not defined under IFRS. The Company believes that these measures provide useful additional information to investors and Company management and contribute to the evaluation of relevant trends and the Company's performance. As not all companies calculate performance measures in the same way, the measures are not always comparable with those used by other companies. These performance measures should therefore not be considered a substitute for measures defined under IFRS. ESMA's guidelines on alternative performance measures are applied and include enhanced disclosure requirements for performance measures not defined under IFRS. Explanations of the financial measures that Biotage considers relevant are provided below.

Net cash/debt

Information on the Group's net cash/debt, defined as cash less liabilities to credit institutions, is reported in order to enable stakeholders and management to monitor and analyze the Group's financial strength.

6/30/2021 12/31/2022

Net cash (+) /net liabilities (-) 67 61
Others -51 -47
Lease-related liabilities -44 -53
Liabilities to credit institutions -150 -150
Cash and cash equivalents 312 311

Profit measurements and adjusted profit measurements

In this report, Biotage uses the performance measure EBIT (Earnings Before Interest and Taxes) as an alternative term for operating profit. EBIT margin is an alternative term for the operating margin, which is calculated as operating profit divided by net sales. Operating profit is calculated as net sales less cost of sales and operating expenses. EBITA is calculated as earnings before amortization of acquisition-related surplus values, interest and tax. EBITA margin is EBITA divided by net sales.

To make it easier for the reader to form an opinion about underlying operations adjusted for non-recurring items related to acquisitions, Biotage also reports adjusted profit measures in the form of adjusted EBIT and adjusted EBITA. The performance measures, how they relate to each other and the effect of adjustments are shown in the tables below.

EBITA 4/1/2022
6/30/2022
4/1/2021
6/30/2021
1/1/2022
6/30/2022
1/1/2021
6/30/2021
1/1/2021
12/31/2021
Operating profit 93 63 189 142 271
Adjustment: Amortization of acquisition
related surplus values
7 2 14 5 12
EBITA 100 65 203 147 284
Adjusted EBIT 4/1/2022
6/30/2022
4/1/2021
6/30/2021
1/1/2022
6/30/2022
1/1/2021
6/30/2021
1/1/2021
12/31/2021
EBIT 93 63 189 142 271
Adjustment additional consideration 5 - 10 - 4
Adjustment transcation costs - - - - 8
Adjusted EBIT 98 63 199 142 283
Adjusted EBITA 4/1/2022
6/30/2022
4/1/2021
6/30/2021
1/1/2022
6/30/2022
1/1/2021
6/30/2021
1/1/2021
12/31/2021
EBITA 100 65 203 147 284
Adjustment additional consideration 5 - 10 - 4
Adjustment transcation costs - - - - 8
Adjusted EBITA 105 65 213 147 296

Organic growth and growth at comparable exchange rates

As most of the Group's net sales are settled in currencies other than the reporting currency, SEK, the amount recognized is affected by exchange rate changes between periods to a relatively large extent. The Group's revenue is also affected by acquisitions. To enable stakeholders and management to obtain a clear picture of organic growth and analyze the sales trend excluding currency effects and acquisitions, the Company reports sales growth for the current and comparative period at constant exchange rates and adjusted for acquisitions. The current period's sales in each currency are translated at the exchange rates that were used in the financial statements for the comparative period and adjusted for acquisitions. Organic growth as a percentage is the ratio of organic growth and reported net sales for the comparative period.

Graphs of net sales and operating result

Biotage has chosen to report graphs of the net sales and the operating result on a last twelve months (LTM) basis as corporate management also follows the development over time on a LTM basis and believes that this provides supplementary information to the calendar-based interim data otherwise given in the report.

Note 3 Pledged assets and contingent liabilities

In connection with the acquisition of ATDBio, Ltd., there has been an agreement on an additional purchase price of GBP 5 million, which may be due provided that certain conditions are met. The terms mean that the additional purchase price is expensed over time, and owed to the extent that they are earned. The excess part, SEK 48 (57) million, is a contingent liability.

4/1/2022
6/30/2022
4/1/2021
6/30/2021
1/1/2022
6/30/2022
1/1/2021
6/30/2021
SEK
millions
% SEK
millions
% SEK
millions
% SEK
millions
%
Net sales recognized in the comparative period 303 254 585 532
Net sales recognized in the period 395 303 781 585
Recognized change 92 30.3 49 19.4 196 33.5 53 10.0
Net sales for the period, excl. acquisitions 386 303 757 585
Change attributable to acquisitions 10 3.2 - - 24 4.1 - -
Net sales for the period at comparative period's
exchange rates, excl. acquisitions
347 336 690 646
Change attributable to currency 38 12.6 -32 -12.7 67 11.5 -61 -11.6
Net sales for the period at comparative period's
exchange rates, excl. acquisitions
347 336 690 646
Organic growth 44 14.4 82 32.1 105 18.0 115 21.6
6/30/2022 6/30/2021
1/1/2022
6/30/2022
7/1/2021
12/31/2021
LTM 1/1/2021
6/30/2021
7/1/2020
12/31/2020
LTM
Net sales 781 647 1 428 585 561 1 146
Operating result 93 130 222 142 120 262
Growth, % 24.7% 3.9%

Note 4 Composition of income

As a result of changes in customer or product classifications, individual sales information may differ from that disclosed in previous interim reports.

Distribution between products and services 4/1/2022
6/30/2022
4/1/2021
6/30/2021
1/1/2022
6/30/2022
1/1/2021
6/30/2021
Products 353 277 694 532
Services 40 24 81 48
Other sales revenue 3 2 5 4
Total sales revenue 395 303 781 585
4/1/2022 4/1/2021 1/1/2022 1/1/2021
Revenue by sales channel 6/30/2022 6/30/2021 6/30/2022 6/30/2021
Direct sales through own sales channels 384 294 756 566
Sales through distributors
Total sales revenue
12
395
8
303
24
781
19
585
Point in time of transfer of goods and services 4/1/2022
6/30/2022
4/1/2021
6/30/2021
1/1/2022
6/30/2022
1/1/2021
6/30/2021
Goods transferred at a point in time 353 277 694 532
Services transferred at a point in time 20 9 44 16
Service contracts and other services transferred over a
period of time
23 18 43 36
Total sales revenue 395 303 781 585
Revenue by systems and aftermarket products 4/1/2022
6/30/2022
4/1/2021
6/30/2021
1/1/2022
6/30/2022
1/1/2021
6/30/2021
System 189 145 369 275
Service 47 30 95 59
Förbrukningsartiklar 159 127 316 251
Total sales revenue 395 303 781 585
Revenue by customer focus area 4/1/2022
6/30/2022
4/1/2021
6/30/2021
1/1/2022
6/30/2022
1/1/2021
6/30/2021
White 268 196 543 394

Red 87 74 150 127 Blue & Green 41 33 88 64 Total sales revenue 395 303 781 585 After a review of the Group's product areas, Biotage has decided to update the product area classification from 1 January 2022. The previous product area Analytical Chemistry has been divided into the product areas Analytical Testing and Water & Environmental Testing. The part of the product area Scale Up that came with the acquisition of ATDBio, Ltd. has broken out in the Diagnostics product area. At the same time, the Organic Chemistry product area has changed its name to Small molecules & Synthetics, and the Biomolecules product area has changed its name to Biologics & Advanced Therapies. The changes are shown in the table below:

Previous reported After Change
Previous name 4/1/2021
6/30/2021
Change 4/1/2021
6/30/2021
New name
Organic chemistry 152 - 152 Small Molecules &
Synthetic Therapeutics
Biomolecules 8 - 8 Biologics &
Advanced Therapeutics
Scale Up 47 - 47 Scale Up
- - - - Diagnostics
Analytical Chemistry 97 -23 74 Analytical Testing
- - 23 23 Water &
Environmental Testing
Total 303 - 303
Previous reported After Change
Previous name 1/1/2021
6/30/2021
Change 4/1/2021
6/30/2021
New name
Organic chemistry 289 - 289 Small Molecules &
Synthetic Therapeutics
Biomolecules 17 - 17 Biologics &
Advanced Therapeutics
Scale Up 95 - 95 Scale Up
- - - - Diagnostics
Analytical Chemistry 184 -42 142 Analytical Testing
- - 42 42 Water &
Environmental Testing
Total 585 - 585

Distribution by geographical markets and product areas for the quarter

Americas EMEA APAC Total
4/1/2022
6/30/2022
4/1/2021
6/30/2021
4/1/2022
6/30/2022
4/1/2021
6/30/2021
4/1/2022
6/30/2022
4/1/2021
6/30/2021
4/1/2022
6/30/2022
4/1/2021
6/30/2021
Small Molecules & Synthetic Therapeutics 56 45 38 37 94 70 188 152
Biologics & Advanced Therapeutics 14 10 34 28 8 8 56 47
Scale Up 14 6 2 2 1 0 17 8
Analytical Testing 51 40 26 19 19 14 96 74
Diagnostics 0 - 7 - 2 - 10 -
Water & Environmental Testing 21 15 4 5 2 3 28 23
Summa 156 116 112 91 127 96 395 303
Americas EMEA APAC Total
1/1/2022
6/30/2022
1/1/2021
6/30/2021
1/1/2022
6/30/2022
1/1/2021
6/30/2021
1/1/2022
6/30/2022
1/1/2021
6/30/2021
1/1/2022
6/30/2022
1/1/2021
6/30/2021
Small Molecules & Synthetic Therapeutics 117 85 75 68 191 136 383 289
Biologics & Advanced Therapeutics 26 11 3 4 2 1 32 17
Scale Up 29 25 66 56 16 14 111 95
Analytical Testing 91 73 52 37 35 32 178 142
Diagnostics 1 - 16 - 7 - 24 -
Water & Environmental Testing 39 27 9 10 5 5 53 42
Summa 304 221 221 176 256 188 781 585

The distribution relates to sales per product area to customers located in the above geographical areas.

This is Biotage

Biotage, a global impact tech company, provides innovative solutions that streamline analytical testing, drug development and manufacturing, alongsid water and environmental analysis. We help solve societal issues on a local and global level by working in a systematic, goal-oriented, and sustainable manner.

Everything we offer helps solve challenging issues facing society. Our customers work in a broad spectrum of industries, including pharmaceutical manufacturing, diagnostics, biotechnology, contract research and manufacturing, clinical, forensic, and academic laboratory research, and food safety, water quality, and environmental testing.

Our wide selection of effective, high-quality solutions plays a key role in streamlining our customers' workflows in pharmaceutical research, development, and manufacturing, as well as diagnostics, analytical testing, and water and environmental analysis. At the same time, our products reduce our customers' environmental footprint, and Biotage is constantly finding ways to continuously lower the amount of solvents and consumables required by our products.

We are proud to contribute to sustainable science in order to make the world a healthier, greener, and cleaner place for humanity - a goal that is summarized by our ethos "HumanKind Unlimited".

Biotage is headquartered in Uppsala in Sweden and employs approx. 497 people worldwide. The Group had sales of 1,232 MSEK in 2021. Biotage's share (BIOT) is listed in the Large Cap segment on the NASDAQ Stockholm

Website: www.biotage.com

This is where we're located

Biotage has 14 office locations in seven different countries. Our own sales organization encompasses 18 countries in North America, Europe, and Asia while our distribution network covers numerous additional countries in South America, Europe, Africa, the Middle East, and Asia. Altogether, we have a presence in over 80 countries worldwide.

Customer excellence

Biotage's mission is to help our customers make the world a healthier, greener and cleaner place. To achieve this we provide them with a wide set of solutions ranging from tools and services for drug and diagnostics discovery and development to products, methods and applications for analytical, clinical, environmental and food testing. All this is in line with our ethos – HumanKind Unlimited.

Our portfolio of solutions is very wide and so is our customer base. They span a wide range of activities – including the pharmaceutical and diagnostic industry, biotech, contract research and manufacturing as well as clinical, forensic and academic laboratories; in addition to organizations focused on food safety, clean water and environmental sustainability. To better meet the needs of each customer group we have divided them into three focus areas: White Tech, Red Tech and Blue & Green Tech.

HumanKind Unlimited

Biotage AB (publ) Box 8 SE-751 03 Uppsala Visiting adress: Vimpelgatan 5 Telephone: +46 18 565900 Org.no.: 556539-3138 www.biotage.com

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