Bactiguard Holding

Earnings Release • Apr 22, 2021

Continued high activity in the first quarter – infection prevention a global sustainability issue

First quarter 2021

• Revenues amounted to SEK 41.8 (48.1) million, a decrease by 13%. Adjusted for currencies the decrease was 3%.
• EBITDA amounted to SEK 1.9 (14.4) million with an EBITDA-margin of 5% (30%).
• Operating profit amounted to SEK -9.7 (3.9) million.
• Net loss for the period amounted to SEK -10.5 (-11.2) million. Earnings per share amounted to SEK -0.31 (-0.34).
• Cash flow from operating activities amounted to SEK -0.9 (-3.5) million corresponding to SEK -0.03 (-0.11) per share.

Covid-19 impact

• During the first quarter, we saw continued recovery in the licensing business with BD and positive development for our BIP portfolio. Sales of BIP products is still affected by reduced general health care, due to Covid-19. The roll-out of vaccines will gradually have a positive impact and lead to a more normal situation in healthcare. At the same time, the global healthcare backlog grows and must be managed. In this context, we see a great need for infection prevention, which is positive for both the license- and BIP businesses. However, near-term developments are still difficult to assess.

Key events during the first quarter

• Breakthrough in the licensing collaboration with Zimmer Biomet with a CE marking for trauma implants with Bactiguard's technology. Production has started and recurring license revenues are gradually being generated.
• A large randomized clinical study shows almost 70% reduction in urinary tract infections with the Bactiguard technology.
• Bactiguard's disinfection- and wound care solution was launched in Greece.
• Apoteket AB includes Hydrocyn in their range.
• Covid-19 related interim approval for Bactiguard's TempSensor Catheter in Canada.
• Continued strengthening of sales focus by recruiting a new Global Head of Sales.
• Cecilia Edström informed the Board that she will be leaving her post as CEO when a successor has been appointed.

Key events after the end of the quarter

• The wound care range will be introduced in Spain.

Key figures	Jan-Mar 2021	Jan-Mar 2020	Full Year 2020	RTM 2021
Revenues2 , SEKm	41.8	48.1	186.0	179.7
EBITDA3 , SEKm	1.9	14.4	26.7	14.2
EBITDA margin3 , %	5%	30%	14%	8%
Operating profit2 , SEKm	-9.7	3.9	-17.6	-31.2
Net profit/loss for the period2 , SEKm	-10.5	-11.2	-38.4	-37.8
Adjusted net profit/loss for the period1,3, SEKm	-10.5	1.6	-27.5	-35.8
Earnings per share2 , SEK	-0.31	-0.34	-1.14	-1.13
Adjusted earnings per share1,3, SEK	-0.31	0,05	-0.82	-1.07
Cash flow from operating activities2 , SEKm	-0.9	-3.5	0.7	3.3
Cash flow from operating activities per share3 , SEK	-0.03	-0.11	0.02	0.1
Equity ratio3 , %	54%	51%	55%	54%
Net debt3 , SEKm	258.3	241.5	254.1	258.3

1 The part of the purchase price for the acquisition of Vigilenz that consisted of shares is considered, for accounting purposes, as a financial instrument and the forward effect is thus reported as a financial item in the income statement and has affected net profit/loss for first quarter 2020 with SEK -12.8 million and full year 2020 with SEK -10.9 million. The adjustment is only affecting accounting and has no effect on cash flow.

2 Defined according to IFRS.

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

CEO comments the first quarter

Continued high activity in the first quarter – infection prevention a global sustainability issue

We saw a continued recovery in the licensing business with BD and reached important milestones in the collaboration with Zimmer Biomet during the quarter. The recently published clinical study confirming how effectively Bactiguard technology reduces the risk of catheter-related urinary tract infections also received great positive attention. At the same time, the work of registering our expanded product portfolio in more markets continues and sales efforts are intensified. Healthcare is still under major pressure due to the pandemic, which has affected demand throughout the past year. In the meantime, a large global healthcare backlog has been built up, which makes the need for infection prevention greater than ever. We are ready to meet that need with our efficient and secure technology and broad product portfolio.

License business – important breakthrough with Zimmer Biomet

The licensing business with Becton, Dickinson and Co (BD) was negatively affected in 2020 when regular healthcare was drastically reduced and elective surgeries were postponed, due to the pandemic. The recovery we began to see in the fourth quarter of 2020 continued during the first quarter. Royalties from BD reflect end-customer sales and have now increased two consecutive quarters, indicating a recovery in US healthcare. At the same time, BD has increased its stocks to some extent to be able to meet increasing demand when the situation normalizes, which had a positive effect on us in the quarter.

The collaboration with Zimmer Biomet is progressing at an ever-faster pace. An important milestone is the CE marking we received in January for their Bactiguard-coated trauma implants. This is a prerequisite for launch in the European market. At the beginning of April, production started at our facility in Penang and Bactiguard will initially act as a contract manufacturer for Zimmer Biomet. The launch will take place later this year and as production increases and the products reach end customers, we will see rising license revenues.

Preparations for product registration in the US are ongoing and will now be intensified. We continue to view the partnership with Zimmer Biomet very positively, as it has the potential to expand Bactiguard's license business considerably.

The pandemic has temporarily led to reduced investment capacity for new potential partners and more time-consuming processes. Despite this, we see a clearly increasing interest in Bactiguard's technology and have several interesting dialogues underway. I am confident in our ability to establish new exciting licensing partnerships and our goal of establishing one or two new deals per year remains unchanged.

Positive development for the BIP portfolio

In all regions healthcare is under strong pressure due to the pandemic. At the same time, regular occupancy has been low, with the exception of the care for Covid-19 patients. Therefore, sales development has been weaker than expected since the second quarter 202o, but during the first quarter of this year, sales of our BIP portfolio developed positively. Our assessment is that it will take a few more quarters before healthcare can return to a more normal situation.

The acquisition of Vigilenz is strategically important and successful. We have broadened the product portfolio with effective products for wound care and disinfection and they are today an important part of our growth strategy. The registration of these products in Europe, the Middle East and India is in progress, but local regulations mean that global rollout is taking a little longer than we would like.

There is strong interest in the wound care range and we have recently established collaborations with more pharmacy chains that want to supplement their range with our products, including Swedish Apoteket AB and apotea.se. As recently as last week, we took another step in Europe with a collaboration for the wound care portfolio in the Spanish market.

Early this year, we established our own sales force for the Nordic region. Our ambition is to increase the marketing intensity and make Bactiguard more visible and influential. We are already starting to see results and expect to see an increased effect of these investments throughout the year.

Further strengthening clinical evidence

Although we already have extensive clinical evidence, we are investing in new studies. In March, a study was published in the internationally renowned scientific journal "Antimicrobial resistance and infection control", which further confirms Bactiguard's infection prevention technology by reducing the risk of catheter-related urinary tract infections by almost 70%.

In addition to demonstrating a significant reduction in the risk of infection, this Indian study provides new insight into how effective Bactiguard's technology is in an environment where infections caused by multi-resistant bacteria are a major problem. We are very pleased with the results of the largest randomized, controlled trial to date on Bactiguard's urinary catheters, which further confirms that our technology is effective in preventing infections.

The study has received a great deal of attention in healthcare and has already led to new contacts and potential collaborations. In April, the first project meeting in the "Vision Zero for healthcare associated infections in India" project was held, where we have the opportunity of establishing collaborations with leading Indian healthcare providers.

Later this year, the results of a Belgian study will be published, where ICU patients were connected to the ventilators via an endotracheal tube (ETT) from Bactiguard. This study may provide clinical evidence for patients cared for in ventilators, which is urgent given the secondary lung infections that affect Covid-19 patients. Here, our technology can be used to prevent further complications for already critically ill patients.

Major global need for infection prevention

The pandemic has put healthcare under severe pressure. To manage the global healthcare burden, efficient and secure healthcare is required. Bactiguard offers well-proven, effective and safe solutions that significantly reduce the risk of infections. And our clinical studies show an effect that many drugs do not come close to, which is a great asset.

The pandemic has had a short-term negative impact on Bactiguard, but the need for infection prevention is greater than ever and we are positive about the future. We have a broader product portfolio and have invested in increased production and development capacity. We have also sharpened our sales organization and made several important breakthroughs in the licensing business. Bactiguard is well positioned to advance its positions in a situation where infection prevention will be a central component in future healthcare and one of the most important global sustainability issues.

Our goal is clear - to establish Bactiguard as a standard of care for infection prevention and thus save lives, increase patient safety and reduce healthcare costs.

Cecilia Edström, CEO

Business model

Bactiguard's vision and mission are to prevent healthcare associated infections, increase patient safety and save lives. The basis for our business model is a unique technology for infection prevention, which we offer to other manufacturers of medical devices through licensing agreements and through our own product portfolio of consumables for health care.

License revenues

Bactiguard licenses the technology to medical device companies throughout the world that apply the technology to their products and sell them under their own brand. In our license business we receive initial fees related to the right to use our technology for products within a specific application and geographical area.

License revenues also comprise royalties; a variable remuneration when the products reach the market and generate sales revenues. The licensee gains access to Bactiguard's process expertise, while the coating itself – a concentrate of noble metals – is a trade secret.

The term new license revenues includes the initial fees, while royalty is included in license revenues.

License partner	Application area	Market
Becton Dickinson and Company (former C.R. Bard)	Urinary catheter (Foley)	The US, Japan, the UK, Ireland, Canada and Australia
Zimmer Biomet	Orthopaedic trauma implants	Global agreement excluding ASEAN
Well Lead Medical	Urinary catheters, ETT and CVC	China
Smartwise Sweden AB	Advanced vascular injection catheters	Global

Bactiguard Infection Protection (BIP)

Bactiguard has a broad portfolio of products that protect against and prevent infections. The portfolio primarily comprises catheters and tubes for the blood stream, urinary and respiratory tracts and wound care products, including sutures, wound wash, dressings and disinfectants.

Development in the first quarter

Revenues

MSEK	Q1	Q1
	2021	2020
License revenues	26.4	27.8
New license revenues	-	-
Sales of BIP products	13.0	16.2
Other revenues	2.4	4.2
Total revenues	41.8	48.1

Revenues in the quarter amounted to SEK 41.8 (48.1) million, which is a decrease of 13%. Adjusted for currencies the decrease was 3%.

License revenues amounted to SEK 26.4 (27.8) million. During the pandemic, regular healthcare and elective surgeries have been postponed, which has affected BD's sales of consumables negatively. The recovery we began to see in the fourth quarter 2020 continued during the first quarter and BD has also increased their stock to some extent. Revenues from BD amounted to SEK 25.4 (27.8) million and were negatively affected by currency effects of SEK 3.7 million. Royalties from BD related to end customer sales increased in the quarter, which indicates a higher occupancy rate in healthcare in the US, where BD has most of its catheter sales.

At the beginning of April, the production of Bactiguard-coated trauma implants started in Penang on behalf of Zimmer Biomet. This generated a first recurring license revenue in the quarter. Bactiguard's license revenues from Zimmer Biomet will increase as production increases. When the implants reach end customers in Europe later this year, Bactiguard will also receive royalties with a delay of a quarter.

Sales of BIP products amounted to SEK 13.0 (16.2) million in the quarter and accounted for 31% of total revenues. The development was positive in general, with sales growth in Southeast Asia, Europe and the Middle East. Growth was primarily driven by wound care products, but we also saw a positive development in the demand for catheters.

The comparison with the first quarter 2020 is affected by the acquisition of Vigilenz and the outbreak of the pandemic. Vigilenz was consolidated as of March 1, 2020. Thus, the first quarter 2020 only included one month of Vigilenz's operations. The outbreak of the Covid-19 pandemic during the first quarter 2020 caused an immediate shortage of protective equipment and Bactiguard had a large order intake for disinfectants in March 2020.

Other income amounted to SEK 2.4 (4.2) million, of which SEK 1.0 (3.6) million relates to balance sheet-related currency effects.

Financial results

EBITDA for the quarter amounted to SEK 1.9 (14.4) million, corresponding to an EBITDA margin of 5% (30%).

Other external costs increased by SEK 0.4 million compared to the first quarter 2020 due to the acquisition of Vigilenz, higher activity in product registrations and digital marketing. On the other hand, travel costs decreased as an effect of the pandemic which counteracted the increase.

Personnel costs increased by SEK 4.0 million compared to the first quarter 2020. The increase is attributable to the integration of Vigilenz and the establishment of a direct sales organization in the Nordic region.

Other operating expenses consist of balance sheet-related currency effects that affected the result negatively by SEK -0.9 (-1.0) million.

Operating profit amounted to SEK -9.7 (3.9) million. Depreciation, which does not affect cash flow, impacted operating profit by SEK -11.6 (-10.5) million, whereof depreciations on the Bactiguard technology amounted to SEK -6.4 (-6.1) million.

Financial items amounted to SEK -1.3 (-16.5) million. Financial costs mainly consist of interest expenses for bank loans and currency effects. The first quarter 2020 was affected by the fact that the part of the purchase price for the acquisition of Vigilenz that consisted of shares was considered as a financial instrument and the forward effect was thus reported as a financial item in the income statement, which affected the finance net with SEK -12.8 million.

Tax for the period amounted to SEK 0.5 (1.5) million. Income tax in foreign subsidiaries amounted to SEK -0.4 million of the tax, while SEK 0.9 million refers to changes in deferred tax attributable to the Group's intangible assets and leasing agreements.

Revenues development, rolling twelve months

Operating profit, rolling twelve months

The positive development of the EBITDA result in 2019 and the beginning of 2020 is an effect of good revenue growth, attributable to new licensing agreements, growth in BIP-sales and the acquisition of Vigilenz. During the second half of 2020, both license revenues and BIP-sales were affected by reduced regular healthcare and postponed operations due to the pandemic, which had an impact on earnings development. EBITDA margin for the rolling twelve months period April 2020 to March 2021 was 8% (33%).

Cash flow

Cash flow from operating activities was SEK -0.9 (-3.5) million. Working capital increased as a result of an increase in sales at the end of the quarter and thus increased accounts receivables.

Investments amounted to SEK -3.7 (-1.9) million in the quarter and consisted of SEK -2.0 million in tangible fixed assets, primarily related to investments in the production facility in Penang to increase capacity, and SEK -1.7 million in intangible assets, which refers to capitalized development expenses.

Amortization of leasing debt affected cash flow from financing activities with SEK-1.9 (-1.3) million.

The negative cash flow from operating activities and investments was partly financed by utilizing the credit facility, which had a positive impact of 5.3 million in the cash flow for the quarter, and total cash flow for the first quarter amounted to SEK -1.6 (-2.9) million.

Financial position

Consolidated equity amounted to SEK 364.9 (376.6) million on March 31, 2021 and the net debt amounted to SEK 258.3 (241.5) million.

In connection with the acquisition of Vigilenz, the Group's existing credit facility provided by SEB was renegotiated and the term extended to February 2023. The total outstanding amount on March 31, 2021 was SEK 170.9 (170.9) million. The loan agreement includes a mandatory annual payment of an amount corresponding to 50% of free cash flow (cash flow before financing, deducted by interest and amortization of leasing debt), but not exceeding SEK 35 million (a so-called cash sweep). As a consequence of the effects of the pandemic, the terms of the loan agreement with SEB were renegotiated in January 2021. The terms have been renegotiated with regard to covenants and available overdraft facilities, which now amount to SEK 45 (30) million, other terms are unchanged. On March 31, 2021 SEK 14.4 (-) million of the overdraft facility was utilized.

On March 31, 2021 total assets amounted to SEK 671.0 (734.4) million. The largest asset items on the balance sheet are goodwill of SEK 246.5 million and the Bactiguard technology which amounted to SEK 143.3 million. The Bactiguard technology is depreciated by approximately SEK 25 million annually over a period of 15 years.

Other information

The share and share capital

Trade in the Bactiguard share takes place at Nasdaq Stockholm with the ticker "BACTI". The closing price for the listed B share was 172.5 SEK on 31 March 2021, and the market capitalization amounted to SEK 5,786 million. The share price development during 2020 meant that Bactiguard, as of January 1, 2021 was moved from the Nasdaq Small Cap to the Nasdaq Mid Cap segment.

The share capital of Bactiguard on 31 March 2021 amounted to SEK 0.8 million divided into 29,543,885 B shares, each with one vote (29,543,885 votes) and 4,000,000 A shares, each with ten votes (40,000,000 votes). The total number of shares and votes in Bactiguard on 31 March 2021 amounted to 33,543,885 shares and 69,543,885 votes.

Ownership

On 31 March ,2021 Bactiguard had 4,436 shareholders.

Shareholders	No of	No of	Total	%	%
	A-shares	B-shares	number	of capital	of shares
Christian Kinch with company and family	2,000,000	4,125,977	6,125,977	18.3%	34.7%
Thomas von Koch and company	2,000 000	4,125,878	6,125,878	18.3%	34.7%
Nordea Investment Funds		3,419,987	3,419,987	10.2%	4.9%
Jan Ståhlberg		3,354,387	3,354,387	10.0%	4.8%
Fjärde AP Fonden		3,325,781	3,325,781	9.9%	4.8%
Handelsbanken Investments Funds		1,878,155	1,878,155	5.6%	2.7%
State Street Bank and Trust Co		959,027	959,027	2.9%	1.4%
UBS AG London Branch		898,194	898,194	2.7%	1.3%
Försäkringsbolaget Avanza Pension		828,615	828,615	2.5%	1.2%
Lancelot Asset Management AB		632,000	632,000	1.9%	0.9%
Total, major shareholders	4,000,000	23,545,001	27,545,001	82.1%	91.4%
Total, others		5,998,884	5,998,884	17.9%	8.6%
Total number of shares	4,000,000	29,543,885	33,543,885	100%	100%

Employees

The average number of employees in the group in quarter amounted to 189 (101), of which 124 (64) are women. The increase is attributable to the acquisition of Vigilenz March 1, 2020.

Key events during the quarter

For key events, see page 1. All press releases are available on the website www.bactiguard.com

Key events after the end of the quarter

For key events, see page 1. All press releases are available on the website www.bactiguard.com

Accounting and valuation principles

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

The accounting and valuation principles are stated in the annual report. As of January 2021, one change in accounting principles has been implemented. The outcome of currency forwards is, from 2021, reported as other income and other operating expenses, respectively. Previously, this outcome was reported under financial items. In other respects, no changes in accounting principles have taken place since the annual report for 2020 was published.

Segment reporting

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

Related-party transactions

Since 2017, Bactiguard has a license agreement with Smartwise Sweden AB ("Smartwise"), a company owned by a group of private and institutional investors, including Bactiguard's main shareholders Christian Kinch and Thomas von Koch. During the period, no transactions with Smartwise took place, but Smartwise's sister company has leased premises from Bactiguard at market terms. In addition, no transactions with related parties occurred in the period.

Parent company

Revenues consist of invoiced intercompany expenses (management fees). During the period, the parent company received interest on its receivables from group companies. No investments were made during the period.

Risk factors

Companies within the Group are exposed to various types of risk through their activities. The company continually engages in a process of identifying all risks that may arise and assessing how each of these risks shall be managed. The Group is working to create an overall risk management program that focuses on minimizing potential adverse effects on the company's financial results. The company is primarily exposed to market related risks, operational risks and financial risks. A description of these risks can be found on page 48-49 and 62-63 in the Annual Report for 2020.

Covid-19

In addition to already identified risks, the impact of the ongoing pandemic is analysed regularly. Bactiguard as a company follows each country's recommendations from the equivalent to the Swedish Public Health Agency and takes action accordingly.

During the past year, the pandemic has affected Bactiguard in several ways. The need for infection prevention increased and thus created new opportunities for Bactiguard, which also had a positive effect on revenues at the beginning of the pandemic. During the third quarter 2020, there was a clear negative impact on our operations related to reduced regular healthcare and postponed interventions.

We saw a continued recovery during the first quarter in the licensing business and positive development of our BIP sales. Both license revenues as well as sales of BIP products are still affected by reduced regular healthcare and postponed elective surgeries. The acquisition of Vigilenz has strengthened Bactiguard and improved cash flow.

There is now a major global healthcare backlog that needs to be managed. The roll-out of vaccines will have a positive effect for healthcare and society at large. We will gradually return to a more normal situation, and we see great need for infection prevention. However, near-term developments are still difficult to assess.

Although the pandemic has affected Bactiguard negatively in the short term, we see a bright future. The need for care remains and we are pushing an accelerating backlog ahead of us that must be addressed. In addition, we have extended our product portfolio and invested in production- and development capacity. We work closely with our licensing partners and see that our technology in the future will generate great value in the form of new license agreements and thus increased cash flow. Based on the above, we believe that the technology has a value far exceeding the book value and therefore sees no need for impairment regarding the Group's intangible assets and deferred tax.

Financial targets

Bactiguard's goal is to create value and generate good returns for the shareholders. Bactiguards financial targets are to achieve:

• an average growth of 20% per year over a five-year period, with 2020 as the base year;
• an EBITDA margin of at least 30% at the end of the five-year period (year 2025);
• a dividend of 30–50% of profit after tax, taking into consideration the company's financial position. The company is in an expansion phase and will therefore in the coming years, prioritize growth over dividends.

Bactiguard will continue to expand its operations by strengthening its sales and marketing organization, developing its product portfolio and entering into new licensing agreements in more therapy areas, as well as selective acquisitions.

Condensed consolidated income statement

Amounts in TSEK	Jan-Mar	Jan-Mar	Full year	RTM
	2021	2020	2020	2021
Revenues Note 1
License revenues	26 419	27 750	103 463	102 132
Sales of BIP products	12 964	16 195	68 852	65 620
Other revenues	2 399	4 160	13 711	11 951
	41 783	48 105	186 026	179 704
Change in inventory of finished goods	533	2 807	4 700	2 426
Capitalized expenses for own account	1 565	374	3 959	5 150
Raw materials and consumables	-8 387	-7 671	-43 853	-44 570
Other external expenses	-12 538	-12 110	-49 330	-49 758
Personnel costs	-20 172	-16 140	-67 188	-71 220
Depreciation and amortisation	-11 613	-10 500	-44 293	-45 407
Other operating expenses	-874	-1 000	-7 659	-7 533
	-51 487	-44 240	-203 664	-210 912
Operating profit/loss	-9 705	3 865	-17 638	-31 208
Profit/loss from financial items
Financial income	2 394	312	2 240	4 322
Financial income	-3 738	-4 031	-15 667	-15 374
Result from change in derivative4		-12 800	-10 868	1 932
	-1 344	-16 518	-24 295	-9 121
Profit before tax	-11 049	-12 653	-41 933	-40 329
Taxes for the period	504	1 477	3 545	2 571
Net profit/loss for the period	-10 545	-11 176	-38 388	-37 758
Attributable to:
Shareholders of the parent	-10 545	-11 176	-38 388	-37 758
Earnings per share, SEK5	-0,31	-0,34	-1,14	-1,13

4 The part of the purchase price for the acquisition of Vigilenz that consisted of shares is considered, for accounting purposes, as a financial instrument and the forward effect is thus reported as a financial item in the income statement. This affected the net profit/loss for the first quarter with SEK -12.8 million and for the full year 2020 with SEK -10.9 million.

5 No dilution effect

Condensed consolidated statement of comprehensive income

Condensed statement of comprehensive income	Jan-Mar	Jan-Mar	Full year	RTM
	2021	2020	2020	2021
Net profit/loss for the period Other comprehensive income:	-10 545	-11 176	-38 388	-37 758
Items that will be reclassified to profit or loss for the year
Translation differences	2 070	1 059	-7 091	2 070
Other comprehensive income, after tax	2 070	1 059	-7 091	2 070
Total comprehensive income for the period	-8 475	-10 117	-45 479	-35 688
Attributable to:
Shareholders of the parent	-8 475	-10 117	-45 479	-35 688
Total earnings per share	-0,25	-0,30	-1,36	-1,06
Number of shares at the end of period ('000)	33 544	33 302	33 544	33 544
Weighted average number of shares ('000)	33 544	33 302	33 544	33 544

Condensed consolidated statement of financial position

Amounts in TSEK	2021-03-31	2020-03-31	2020-12-31
ASSETS
Non-current assets
Goodwill	246 479	248 220	245 411
Technology	143 300	168 707	149 652
Brands	26 120	26 140	26 155
Customer relationships	8 987	10 673	9 334
Capitalised development expenditure	22 811	21 353	22 324
Patents	1 185	310	1 117
Intangible assets	448 882	475 404	453 994
Leased assets	70 827	77 639	73 029
Buildings	13 903	15 248	13 509
Improvements, leasehold	7 968	9 560	8 370
Machinery and other technical plant	9 848	8 025	7 981
Equipment, tools and installations	5 222	4 762	5 283
Property, plant and equipment	107 768	115 235	108 173
Long-term receivables	1 697	1 826	1 708
Financial assets	1 697	1 826	1 708
Total non-current assets	558 347	592 465	563 875
Current assets
Inventory	34 902	40 899	34 161
Accounts receivable	51 519	61 673	49 642
Other current receivables Note 2	16 816	19 676	17 657
Cash and cash equivalents	9 380	19 723	9 886
Total current assets	112 616	141 971	111 346
TOTAL ASSETS	670 963	734 436	675 221
Equity attributable to shareholders of the parent
Share capital	839	833	839
Other equity	364 036	375 758	372 511
Total equity	364 875	376 590	373 349
Non-current liabilities
Deferred tax liability	11 192	16 844	11 980
Liabilities to credit institutions	193 627	180 673	188 016
Liabilities leasing agreements	64 381	70 475	66 263
Total non-current liabilities	269 199	267 992	266 259
Current liabilities
Liabilities to credit institutions	-	826	-
Accounts payable	7 515	16 743	8 801
Liabilities leasing agreements	9 647	9 272	9 746
Other current liabilities Note 2	3 855	41 502	3 991
Accrued expenses and deferred income	15 872	21 511	13 076
Total current liabilities	36 889	89 854	35 614
Total liabilities	306 088	357 846	301 872
TOTAL EQUITY AND LIABILITIES	670 963	734 436	675 221

Condensed consolidated statement of changes in equity

Amounts in TSEK		Equity attributable to shareholders of the parent
	Share capital	Other capital contributions	Translation reserve	Retained earnings including net profit for the period	Total equity
Opening balance, 1 January 2020 Adjustment of equity for previous year Profit/loss for the period	833	675 690	-711	-289 120 17 -11 176	386 691 17 -11 176
Other comprehensive income: Translation differences			1 059		1 059
Total comprehensive income after tax	-	-	1 059	-11 176	-10 117
Transactions with shareholders Total transactions with shareholders	-	-	-	-	-
Closing balance, 31 March 2020	833	675 690	348	-300 296	376 590
Opening balance, 1 January 2021	839	707 805	-7 802	-327 492	373 349
Profit/loss for the period				-10 545	-10 545
Other comprehensive income: Translation differences			2 070		2 070
Total comprehensive income after tax	-	-	2 070	-10 545	-8 475
Transactions with shareholders Total transactions with shareholders	-	-	-	-	-
Closing balance, 31 March 2021	839	707 805	-5 732	-338 037	364 875

Condensed consolidated statement of cash flows

Amounts in TSEK	Jan-Mar	Jan-Mar	Full year	RTM
	2021	2020	2020	2021
	-10 545	-11 176	-38 388	-37 757
Net profit/loss for the period
Adjustments for depreciation and amortisation and other non-cash items	12 095	20 928	52 629	43 795
Cash flow from changes in working capital	-2 443	-13 263	-13 539	-2 719
Cash flow from operating activities	-893	-3 511	702	3 319
Acquisition of subsidiary	-	-38 939	-41 663	-2 724
Investments in non-current assets	-3 691	-1 858	-15 350	-17 183
Cash flow from investing activities	-3 691	-40 797	-57 013	-19 907
Debt incurred	-	43 441	43 441	-
Amortisation of lease	-1 882	-1 286	-5 498	-6 094
Amortisation of loan	-139	-	-1 376	-1 515
Change in bank overdraft	5 256	-	8 856	14 112
Other financing activities	-291	-793	781	1 284
Cash flow from financing activities	2 944	41 362	46 204	7 787
Cash flow for the period	-1 640	-2 946	-10 107	-8 801
Cash and cash equivalents at start of period	9 886	22 878	22 878	19 723
Exchange difference in cash and cash equivalents	1 134	-209	-2 886	-1 542
Cash and cash equivalents at end of period	9 380	19 723	9 886	9 380

Condensed parent company

Amounts in TSEK	Jan-Mar	Jan-Mar	Full year
	2021	2020	2020
Revenues	0	1 413	2 315
Operating expenses	-1 376	-2 448	-7 578
Operating profit/loss	-1 376	-1 035	-5 263
Net financial items	-604	-13 676	-13 636
Profit/loss after financial items	-1 980	-14 711	-18 899
Tax for the period	-	-	-
Net profit/loss for the period	-1 980	-14 711	-18 899

The parent company presents no separate statement of comprehensive income since the company has no items in 2021 or 2020 recognized in other comprehensive income. Net profit/loss for the period for the parent company thereby also constitutes the comprehensive income for the period.

Amounts in TSEK	2021-03-31	2020-03-31	2020-12-31
ASSETS
Non-current assets
Financial assets	659 420	658 952	659 431
Deferred tax asset	15 255	15 255	15 255
Total non-current assets	674 674	674 207	674 686
Current assets	1 049	1 857	880
Total current assets	1 049	1 857	880
TOTAL ASSETS	675 723	676 064	675 566
EQUITY & LIABILITIES
Total equity	479 115	453 162	481 095
Non-current liabilities
Liabilities to credit institutions	169 657	168 987	169 489
Total non-current liabilities	169 657	168 987	169 489
Current liabilities	26 952	53 916	24 982
Total current liabilities	26 952	53 916	24 982
Total liabilities	196 609	222 903	194 471
TOTAL EQUITY AND LIABILITIES	675 723	676 064	675 566

Performance measures

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

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

EBITDA

Shows the company's earnings capacity from ongoing operations irrespective of capital structure and tax situation. The key figure is used to facilitate comparisons with other companies in the same industry. The company considers this key figure to be the most relevant performance measure of the business because the company has a large asset item in Technology, which generates large depreciation while the value is considered to be significant for the company even after the technology has been fully depreciated. Bactiguard's patented and unique technology can be applied to a wide range of products, both in the BIP portfolio and through license deals.

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

Jan-Mar	Jan-Mar	Full year	RTM
2021	2020	2020	2021
-9 705	3 865	-17 638	-31 208
11 613	10 500	44 293	45 407
1 908	14 365	26 655	14 199

EBITDA-marginal

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

Amounts in TSEK	Jan-Mar	Jan-Mar	Full year	RTM
	2021	2020	2020	2021
EBITDA	1 908	14 365	26 655	14 199
Revenue	41 783	48 105	186 026	179 704
EBITDA-margin	5%	30%	14%	8%

Adjusted net profit/loss

As a partial payment of the acquisition of Vigilenz, a set-off issue was executed after the Annual General Meeting in April. According to the IFRS regulations, the set-off issue must technically be reported as a forward contract, which affects the reported net result. To simplify the comparison between the years, the key figure Adjusted net profit/loss for the period is presented, which shows the net profit/loss for the period adjusted for the non-recurring accounting effect in connection with set-off issue.

Amounts in TSEK	Jan-Mar	Jan-Mar	Full year	RTM
	2021	2020	2020	2021
Net profit	-10 545	-11 176	-38 388	-37 758
IFRS adjustment from set-off issue	0	12 800	10 868	1 932
Adjusted Net profit/loss	-10 545	1 624	-27 520	-35 826

Net debt

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

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

Amounts in TSEK	Jan-Mar	Jan-Mar	Full year
	2021	2020	2020
Liabilities to credit institutions	193 627	181 499	188 016
Long-term liabilities leasing	64 381	70 475	66 263
Short-term liabilities leasing	9 647	9 272	9 746
Interest-bearing liabilities	267 655	261 246	264 024
Cash and cash equivalents	-9 380	-19 723	-9 886
Net debt	258 275	241 522	254 138

Equity ratio

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

Amounts in TSEK	Jan-Mar 2021	Jan-Mar 2020	Full year 2020
Equity	364 875	376 590	373 349
Balance sheet total	670 963	734 436	675 221
Equity ratio	54%	51%	55%

Earnings per share

Profit attributable to holders of ordinary shares in the Parent Company divided by the weighted average number of outstanding ordinary shares during the period, in accordance with IFRS.

Adjusted Earnings per share

Profit attributable to holders of ordinary shares in the Parent Company, adjusted for the nonrecurring accounting effect in connection with the set-off issue, divided by the weighted average number of outstanding ordinary shares during the period. The key figure is presented to simplify comparisons between the years.

Amounts in TSEK	Jan-Mar	Jan-Mar	Full year	RTM
	2021	2020	2020	2021
Adjusted Net profit/loss	-10 545	1 624	-27 520	-35 826
Number of shares at the end of the	33 544	33 302	33 544	33 544
Adjusted earnings per share	-0,31	0,05	-0,82	-1,07

Profit/loss from financial items

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

Note 1 Revenue distribution

Jan-Mar 2021	Jan-Mar 2020	Full year 2020	RTM 2021
26 419	27 750	103 463	102 132
12 964	16 195	68 852	65 620
39 383	43 946	172 315	167 753
39 383	43 946	172 315	167 753
0 39 383	0 43 946	0 172 315	0 167 753

Note 2 Financial assets and liabilities

The table below shows the breakdown of financial assets and financial liabilities recognized at fair value in the consolidated balance sheet.

Distribution of how fair value is determined is based on three levels;

Level 1: according to prices quoted on an active market for the same instrument. Level 2: based on directly or indirectly observable market data not included in level 1. Level 3: based on input data that is not observable on the market.

For description of how real values have been calculated, see annual report 2020, note 4. Fair value of financial assets and liabilities is estimated to be substantially consistent with book values. The group holds derivative instruments for foreign exchange contracts which are recognized at fair value through profit or loss, considering the current exchange rate on the foreign exchange market and the remaining maturity of respective instruments.

Amounts in TSEK	Jan-Mar		Jan-Mar 2020		Full year
	2021				2020
Assets	Derivatives	(level 2)	Derivatives	(level 2)	Derivatives (level 2)
Assets Other current receivables	276		-		1 988
Liabilities Other current liabilities			1030

Quarterly information

Amounts in TSEK	Q1 2019	Q2 2019	Q3 2019	Q4 2019	Q1 2020	Q2 2020	Q3 2020	Q4 2020	Q1 2021	RTM
License revenues	26 929	27 698	25 004	33 650	27 750	22 085	20 249	32 786	26 419	101 540
New license revenues	1 082	1 036	29 351	-	-	-	-	592	-	592
Sales of BIP products	3 143	3 154	8 650	25 289	16 195	25 413	10 365	16 878	12 964	65 620
Other revenues	2 754	1 149	4 153	886	4 160	712	3 536	5 304	2 399	11 951
Total revenues	33 909	33 037	67 158	59 825	48 105	48 211	34 150	55 561	41 783	179 704
EBITDA	7 181	5 735	36 472	12 221	14 365	10 522	-3 103	4 871	1 908	14 198
EBITDA margin	21%	17%	54%	20%	30%	22%	-9%	9%	5%	8%
EBIT	-3 382	-4 785	25 908	1 739	3 865	-777	-14 291	-6 435	-9 705	-31 208
Net profit/loss for the period	-3 423	-5 627	23 716	1 560	-11 176	-272	-16 114	-10 826	-10 545	-37 757
Adjusted net profit/loss for the period					1 624	-2 204	-16 114	-10 826	-10 545	-39 689
Earnings per share, SEK	-0,10	-0,17	0,71	0,05	-0,34	-0,01	-0,48	-0,32	-0,31	-1,13
Adjusted earnings per share, SEK					0,05	-0,07	-0,48	-0,32	-0,31	-1,18
Operating cash flow	-6 476	-243	23 850	36 850	-3 511	3 583	-3 301	3 931	-893	3 320
Operating cash flow per SEK	-0,19	-0,01	0,72	1,11	-0,11	0,11	-0,10	0,12	-0,03	0,10
Net debt	238 158	239 188	217 217	185 006	241 523	241 587	250 109	254 138	258 275	258 275
Total shares (pcs)	33 302 373	33 302 373	33 302 373	33 302 373	33 302 373	33 543 885	33 543 885	33 543 885	33 543 885	33 543 885

Forthcoming disclosures of information

28 April 2021	Annual General Meeting via postal voting
15 July 2021	Interim report 1 April - 30 June 2021
28 October 2021	Interim report 1 July - 30 September 2021

Contacts

For additional information, please contact:

Cecilia Edström, CEO: +46 8 440 58 80

Gabriella Björknert Caracciolo, CFO and Deputy CEO: +46 72 141 62 49

Signatories of the report

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

Stockholm, 22 April 2021

Christian Kinch Jan Ståhlberg

Chairman Board Member

Thomas von Koch Anna Martling

Board Member Board Member

Cecilia Edström

CEO and Board Member

This interim report is unaudited.

Bactiguard is a Swedish medical device company with a mission to save lives. To achieve this mission, we develop and supply infection prevention solutions which reduce the risk of healthcare associated infections and the use of antibiotics. This way, we save significant costs for healthcare and the society in large. The Bactiguard technology prevents bacterial adhesion and biofilm formation on medical devices. Bactiguard offers the technology through license agreements and our BIP (Bactiguard Infection Protection) portfolio of products. Through our license partner BD, urinary catheters with Bactiguard's coating are market leading in the USA and Japan. Bactiguard's own product portfolio of urinary catheters, endotracheal tubes and central venous catheters prevent some of the most common infections which appear in the urinary tract, the blood stream and the respiratory tract. Bactiguard is in a strong expansion phase in the European markets, China, India and the Middle East by establishing license agreements in new therapeutic areas. Recently, Bactiguard completed the acquisition of Malaysian Vigilenz, a manufacturer and supplier of medical devices and consumables, primarily within wound care and infection prevention. Following the acquisition, Bactiguard has about 180 employees around the world. Its headquarters and one of three production facilities are located in Stockholm, the other two in Malaysia. Bactiguard is listed on Nasdaq Stockholm. Read more about how Bactiguard save lives at www.bactiguard.com

This information is information that Bactiguard Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above 2021-04-22, at. 08.00.