Mycronic

Annual Report • Feb 8, 2024

Year-end Report January-December 2023

Fourth quarter

• Order intake amounted to SEK 1,448 (2,529) million, a decrease of 43 percent
• Net sales increased 31 percent to SEK 1,968 (1,497) million. Based on constant exchange rates, the increase in net sales was 30 percent
• EBIT amounted to SEK 620 (262) million and the EBIT margin was 32 (18) percent
• Earnings per share were SEK 5.23 (2.56)

January-December

• Order intake amounted to SEK 6,280 (6,783) million, a decrease of 7 percent
• Net sales increased 11 percent to SEK 5,706 (5,119) million. Based on constant exchange rates, net sales increased 8 percent
• EBIT amounted to SEK 1,235 (894) million and the EBIT margin was 22 (17) percent
• Earnings per share were SEK 10.22 (7.59)
• The Board of Directors proposes a dividend of SEK 4.50 (3.50) per share to the 2024 Annual General Meeting

"We ended the year strongly with an increase in net sales of 31 percent to the new record level of SEK 1,968 million and our best ever EBIT of SEK 620 million, corresponding to an EBIT margin of 32 percent. Order intake was healthy, although we could not match the extremely strong order intake from the fourth quarter of the previous year. We can now look back on a successful 2023, with record-strong net sales and EBIT. In 2024, I am looking forward to our development work yielding exciting new product launches, meaning that we can continue offering innovative and sustainable production solutions to our customers and thereby enabling the future of electronics" says Anders Lindqvist, President and CEO.

Outlook 2024

It is the Board of Directors' opinion that net sales for 2024 will be at a level of SEK 6.25 billion.

		Q4		Jan-Dec
Group summary	2023	2022	2023	2022
Order intake, SEK million	1,448	2,529	6,280	6,783
Net Sales, SEK million	1,968	1,497	5,706	5,119
Book-to-bill	0.7	1.7	1.1	1.3
Order backlog, SEK million	4,149	3,574	4,149	3,574
Gross margin, %	54.0%	44.9%	50.0%	44.7%
EBIT, SEK million	620	262	1,235	894
EBIT margin, %	31.5%	17.5%	21.6%	17.5%
Earnings per share before/after dilution, SEK	5.23	2.56	10.22	7.59
Cash Flow, SEK million	491	384	966	537
Changes in Net Sales
Total growth, %	31%	16%	11%	10%
Organic growth, %	30%	9%	8%	-4%
Growth from acquisitions/divestments, %	-	-3%	0	5%
Currency effects, %	1%	10%	4%	9%

CEO comments

We ended the year strongly with an increase in net sales of 31 percent to the new record level of SEK 1,968 million and our best ever EBIT of SEK 620 million, corresponding to an EBIT margin of 32 percent. Order intake was healthy, although we could not match

the extremely strong order intake from the fourth quarter of the previous year.

In Pattern Generators, the photomask market for displays has slowed somewhat, while the photomask market for semiconductors was stable. The final quarter of the year was characterized by a focus on execution and delivery of mask writers, which the division managed to do very well by delivering all eight of the planned mask writers and thus securing a strong end to the year. Pattern Generators received orders for four mask writers during the fourth quarter: one Prexision 8 Evo and three SLXs. The division also received its first order to upgrade from gas lasers to solid state lasers in previously installed display mask writers, thereby significantly lowering the mask writers' energy consumption. These upgrades - along with the solid state lasers in new mask writers - represent milestones in our efforts to significantly reduce the carbon footprint of our mask writers.

In High Flex, demand in Europe and the US remained robust, while there was still no sign of a recovery in China and the rest of Asia. The unique High Flex full line solution portfolio was upgraded during the quarter with the launch of MYPro A40, a new pick-and-place machine, that is the heart of a production line for surface mount technology. The MYPro A40 can handle larger components with a speed

increase of up to 50 percent compared to its predecessor, the MY300. During November, the division participated at Productronica, one of the world's largest electronics production trade fairs, which takes place in Munich every second year. The MYPro A40 was exhibited for the first time at the fair and it received very positive feedback.

During the fourth quarter, High Volume noted increased activity with regards to project inquiries from consumer electronics customers in China, even though it is too early to speak of a turnaround in the market. The division is continuing to focus on expanding its business outside China, accompanying consumer electronics customers mainly to South-East Asia. The expansion abroad associated with the electric vehicle industry is mainly focused on North America and Europe.

The positive trend in Global Technologies linked to AIrelated demand continued during the final quarter of the year. This was mainly reflected in strong order intake and net sales in die bonding. The market for electrical testing of printed circuit boards and substrates has been weak, with the exception of high layer count PCBs associated with AI.

We can now look back on a successful 2023, with recordstrong net sales and EBIT. In 2024, I am looking forward to our development work yielding exciting new product launches, meaning that we can continue offering innovative and sustainable production solutions to our customers and thereby enabling the future of electronics.

Anders Lindqvist, President and CEO

Order intake and net sales, rolling 12 months Gross and EBIT margin, rolling 12 months

Financial performance

GROUP

	Q4		Jan-Dec
	2023	2022	2023	2022
Order intake, SEK million	1,448	2,529	6,280	6,783
Order backlog, SEK million	4,149	3,574	4,149	3,574
Net Sales, SEK million	1,968	1,497	5,706	5,119
Gross profit, SEK million	1,063	672	2,855	2,288
Gross margin, %	54.0%	44.9%	50.0%	44.7%
EBIT, SEK million	620	262	1,235	894
EBIT margin, %	31.5%	17.5%	21.6%	17.5%
EBITDA, SEK million	685	336	1,499	1,147

The Group's order intake remained healthy during the fourth quarter despite a decline of 43 percent to SEK 1,448 (2,529) million, which was attributable to extremely high order intake for Pattern Generators in the corresponding period in the preceding year. For the full year, order intake exceeded net sales by 10 percent, despite a decrease of 7 percent compared with the preceding year, and amounted to SEK 6,280 (6,783) million. The Group's order backlog at the end of the year was SEK 4,149 (3,574) million.

Net sales increased 31 percent during the final quarter of the year to SEK 1,968 (1,497) million, driven mainly by Pattern Generators. For the full year, net sales increased 11 percent to SEK 5,706 (5,119) million. Net sales for the quarter were positively impacted by currency effects of SEK 15 million. The corresponding full year effect was a positive SEK 184 million.

The gross margin increased to 54 (45) percent during the quarter. The full year gross margin increased to 50 (45) percent.

EBIT for the quarter increased to the new record level of SEK 620 (262) million, corresponding to an EBIT margin of 32 (18) percent. EBIT for the full year amounted to SEK 1,235 (894) million, corresponding to an EBIT margin of 22 (17) percent. Acquisition-related costs amounted to SEK 14 (19) million for the final quarter of the year and to SEK 63 (67) million for the full year.

Cash flow and financial position

The Group's cash and cash equivalents at the end of the year were SEK 2,140 (1,274) million. Cash flow for the year amounted to SEK 966 (537) million. Cash flow from operating activities amounted to SEK 1,608 (853) million. Working capital decreased and contributed SEK 138 million in positive cash flow during the year, compared with a negative cash flow of SEK 113 million in the preceding year. The decrease in working capital is mainly attributable to an increase in advance payments from customers.

Investing activities generated a negative cash flow of SEK 195 million during the year, compared with a positive cash flow of SEK 67 million in the preceding year due to the divestment of AEi. Investments in property, plant and equipment accounted for SEK 103 (107) million and capitalization of product development for SEK 63 (30) million. Financing activities for the year utilized SEK 447 (382) million, of which SEK 343 (294) million related to dividends to shareholders. At the end of the year, Mycronic had a strong net cash position of SEK 1,912 (1,004) million.

Sustainability

Diversity and inclusion was the highest rated topic in Mycronic's annual global employee engagement survey, conducted during the fourth quarter. This supports the company's ambition to be an attractive employer. During the quarter, Mycronic also completed an update to its materiality assessment, in line with forthcoming requirements under the EU Corporate Sustainability Reporting Directive (CSRD). The results from this assessment will form the basis for Mycronic's sustainability reporting as of the 2024 fiscal year.

PATTERN GENERATORS

	Q4		Jan-Dec
	2023	2022	2023	2022
Order intake, SEK million	513	1,829	2,694	3,106
Order backlog, SEK million	3,068	2,480	3,068	2,480
Net Sales, SEK million	878	455	2,106	1,369
Gross profit, SEK million	600	247	1,389	782
Gross margin, %	68.4%	54.4%	66.0%	57.1%
EBIT, SEK million	510	154	1,053	465
EBIT margin, %	58.1%	33.9%	50.0%	34.0%
EBITDA	525	166	1,110	510
R&D expenditures, SEK million	-74	-61	-255	-219
R&D costs, SEK million	-66	-60	-228	-217

The photomask market for displays slowed somewhat during the fourth quarter, while the photomask market for semiconductors was stable. The final quarter of the year for Pattern Generators was characterized by a focus on execution and delivery of mask writers.

The division received orders for four mask writers during the fourth quarter: one Prexision 8 Evo and three SLXs. The division also received its first order to upgrade from gas lasers to solid state lasers in previously installed display mask writers, thereby significantly lowering the mask writers' energy consumption. Order intake declined 72 percent to SEK 513 (1,829) million compared with the extremely strong order intake noted in the corresponding period of the preceding year. For the full year, order intake decreased 13 percent to SEK 2,694 (3,106) million.

At the end of the quarter, the order backlog amounted to SEK 3,068 (2,480) million and contained 27 systems with planned deliveries as follows:

2024 Q1: 1 Prexision 800 Evo, 1 Prexision 8 Entry Evo, 3 SLXs

2024 Q2: 1 Prexision 8 Evo, 1 Prexision MMS, 4 SLXs

2024 Q3: 2 Prexision 8 Evo, 3 SLXs

2024 Q4: 1 Prexision 8 Entry Evo, 1 Prexision Lite 8 Evo,

1 FPS10 Evo, 1 SLX

2025 Q1: 3 Prexision 8 Evo, 2 SLXs 2025 Q2: 1 Prexision Lite 8 Evo 2025 Q3: 1 Prexision Lite 8 Evo

Compared to the delivery schedule presented in the latest quarterly report, delivery of one SLX was moved from the first to the second quarter of 2024.

Pattern Generators has continuously focused on improving production efficiency so as to increase its delivery capacity. During the final quarter of the year, the division delivered one Prexision 8 Evo, one Prexision Lite 8 Evo and six SLXs, compared with one Prexision Lite 8 Evo and four SLXs in the corresponding period of the preceding year. Net sales increased 93 percent to SEK 878 (455) million. For the full year, net sales increased 54 percent to SEK 2,106 (1,369) million. Net sales for the quarter were negatively impacted by currency effects of SEK 3 million and for the full year positively by SEK 51 million.

The gross margin for the quarter increased to 68 (54) percent and to 66 (57) percent for the full year.

EBIT increased to a record SEK 510 (154) million, corresponding to an EBIT margin of 58 (34) percent. EBIT for the full year increased to SEK 1,053 (465) million, corresponding to an EBIT margin of 50 (34) percent.

Pattern Generators continues to invest in the development of the products of the future. R&D costs for the quarter amounted to SEK 66 (60) million and SEK 228 (217) million for the full year. Capitalization of development costs amounted to SEK 7 (1) million for the quarter and SEK 27 (2) million for the full year.

HIGH FLEX

	Q4		Jan-Dec
	2023	2022*	2023*	2022*
Order intake, SEK million	359	322	1,501	1,412
Order backlog, SEK million	120	155	120	155
Net Sales, SEK million	477	446	1,535	1,405
Gross profit, SEK million	221	185	640	571
Gross margin, %	46.2%	41.5%	41.7%	40.6%
EBIT, SEK million	96	61	195	161
EBIT margin, %	20.1%	13.6%	12.7%	11.5%
EBITDA	107	80	237	211
R&D expenditures, SEK million	-55	-57	-214	-205
R&D costs, SEK million	-45	-58	-183	-187

^*Restated for comparability, see Note 1.

Demand in Europe and the US remained robust, while there was still no sign of a recovery in China and the rest of Asia. The unique High Flex full line solution portfolio was upgraded during the quarter with the launch of MYPro A40, a new pick-and-place machine, that is the heart of a production line for surface mount technology. The MYPro A40 can handle larger components with a speed increase of up to 50 percent compared to its predecessor, the MY300. During November, the division participated at Productronica, one of the world's largest electronics production trade fairs, which takes place in Munich every second year. The MYPro A40 was exhibited for the first time at the fair and it received very positive feedback.

Order intake rose 11 percent during the quarter and amounted to SEK 359 (322) million. For the full year, order intake increased 6 percent to SEK 1,501 (1,412) million. The order backlog at the end of the year was SEK 120 (155) million.

High Flex finished the final quarter of the year with good deliveries, beating the strong quarter in the corresponding period the previous year, with net sales increasing 7 percent to SEK 477 (446) million. For the full year, net sales increased 9 percent to SEK 1,535 (1,405) million, despite a decline in the market for SMT robots for component mounting of almost 27 percent. Net sales for the quarter were positively impacted by currency effects of SEK 13 million and positively for the full year by SEK 80 million.

The gross margin for the quarter amounted to 46 (41) percent and 42 (41) percent for the full year.

EBIT amounted to SEK 96 (61) million, with an EBIT margin of 20 (14) percent. EBIT for the full year amounted to SEK 195 (161) million, corresponding to an EBIT margin of 13 (11) percent.

R&D costs for the fourth quarter amounted to SEK 45 (58) million and SEK 183 (187) million for the full year. The capitalization of development costs amounted to SEK 12 (5) million for the quarter and SEK 36 (28) million for the full year.

HIGH VOLUME

	Q4		Jan-Dec
	2023	2022*	2023*	2022*
Order intake, SEK million	276	213	1,101	1,387
Order backlog, SEK million	662	700	662	700
Net Sales, SEK million	306	373	1,140	1,479
Gross profit, SEK million	121	154	482	600
Gross margin, %	39.7%	41.3%	42.3%	40.6%
EBIT, SEK million	32	89	173	301
EBIT margin, %	10.3%	24.0%	15.2%	20.4%
EBITDA	35	96	196	325
R&D expenditures, SEK million	-34	-29	-128	-131
R&D costs, SEK million	-34	-30	-132	-136

^*Restated for comparability, see Note 1.

During the fourth quarter, High Volume noted increased activity with regards to project inquiries from consumer electronics customers in China, even though it is too early to speak of a turnaround in the market. The division is continuing to focus on expanding its business outside China, accompanying consumer electronics customers mainly to South-East Asia. The expansion abroad associated with the electric vehicle industry is mainly focused on North America and Europe.

Order intake rose 29 percent during the quarter, compared with a very weak quarter in the corresponding period the previous year, and amounted to SEK 276 (213) million. For the full year, order intake decreased 21 percent to SEK 1,101 (1,387) million. At the end of the quarter, the order backlog totaled SEK 662 (700) million.

Net sales declined 18 percent during the fourth quarter to SEK 306 (373) million. Net sales declined 23 percent to SEK 1,140 (1,479) million for the full year. Net sales for the quarter were not impacted by currency effects, while the full year was positively impacted by SEK 8 million.

The gross margin was 40 (41) percent for the quarter. The gross margin for the full year rose to 42 (41) percent, despite lower net sales.

The division's EBIT declined during the quarter to SEK 32 (89) million, corresponding to an EBIT margin of 10 (24) percent. EBIT for the full year declined to SEK 173 (301) million, corresponding to an EBIT margin of 15 (20) percent.

R&D costs for the quarter amounted to SEK 34 (30) million and SEK 132 (136) million for the full year.

GLOBAL TECHNOLOGIES

	Q4			Jan-Dec
	2023	2022	2023	2022
Order intake, SEK million	303	164	987	877
Order backlog, SEK million	297	239	297	239
Net Sales, SEK million	310	224	928	865
Gross profit, SEK million	122	83	343	333
Gross margin, %	39.2%	37.1%	37.0%	38.5%
EBIT, SEK million	37	6	59	101
EBIT margin, %	11.8%	2.6%	6.3%	11.7%
EBITDA	51	20	117	156
R&D expenditures, SEK million	-22	-21	-82	-71
R&D costs, SEK million	-29	-28	-110	-97

The positive trend in Global Technologies linked to AIrelated demand continued during the final quarter of the year. This was mainly reflected in strong order intake and net sales in die bonding. The market for electrical testing of PCBs and substrates has been weak, with the exception of high layer count PCBs associated with AI.

Order intake increased 84 percent to SEK 303 (164) million during the quarter. For the full year, order intake increased 12 percent to SEK 987 (877) million, while the order intake excluding the divested AEi increased 13 percent. At the end of the quarter, the order backlog totaled SEK 297 (239) million.

Net sales increased 39 percent to SEK 310 (224) million during the quarter. For the full year, net sales increased 7 percent to SEK 928 (865) million, and organic net sales

increased 2 percent. Net sales for the quarter were positively impacted by currency effects of SEK 5 million and for the full year positively by SEK 46 million.

The gross margin for the quarter amounted to 39 (37) percent and 37 (38) percent for the full year.

EBIT increased to SEK 37 (6) million, with an EBIT margin of 12 (3) percent. EBIT for the full year declined to SEK 59 (101) million, corresponding to an EBIT margin of 6 (12) percent. The divestment of AEi in February 2022 had a positive impact of SEK 23 million on EBIT of the preceding year.

R&D costs for the fourth quarter amounted to SEK 29 (28) million and SEK 110 (97) million for the full year.

Electronics industry

The global electronics industry is assessed to have declined 0.4 percent in 2023 to USD 2,417 billion¹ . For the full year 2023, the semiconductor market is forecast to have shrunk 9.2 percent to the equivalent of USD 520 billion¹ .

OUTLOOK

Annual growth for the electronics industry is forecast at 3.7 percent for the period 2022-2027¹ . Segments with the strongest expected growth during this five-year period are electronics for data centers, the automotive industry, wearable electronics, industrial applications and defense & aerospace. The electronics industry is forecast to demonstrate growth of 6.1 percent in 2024. Growth is expected to occur in all segments, except those linked to consumer electronics, such as personal computers and TVs. In 2024, the semiconductor market is expected to grow 11.3 percent and is forecast to be positive during the 2022- 2027 period as a whole, with annual growth of 4.1 percent¹ . The display market is estimated to have declined 5.5 percent in 2023 to USD 116 billion² , mainly due to lower prices for LCD displays. For 2024, the market is forecast to grow 6.7 percent due to growth in both LCD and AMOLED displays. During the 2023-2028 period, the display market is expected to demonstrate annual growth of 4.7 percent² . The long-term trend towards a larger share of advanced AMOLED displays is forecast to continue, albeit at a slower pace, as AMOLED now comprises a large share of the total market.

Size/growth	2024F	2023	2022
Electronics industry, percentual change¹	+6.1%	-0.4%	-2.1%
Semiconductor industry, percentual change¹	+11.3%	-9.2%	+3.1%
SMT component mounting, percentual change³	NA	-26.5%	-17.9%
Dispensing, USD million⁴	NA	NA	930
Displays, USD, billion²	124	116	123
Photomasks for displays, percentual change in value⁵	+1.4%	+0.8%	+24.4%
Photomasks for semiconductors, percentual change in value⁶	+8.7%	+13.0%	+18.3%
Display photomask area, thousand sq. meters⁵	21.4	21.0	21.1

SMT AND DISPENSING MARKET AREA

The global market for SMT equipment has annual sales of approximately USD 5,500 million⁷ . The segment SMT robots for component mounting declined 26.5 percent in 2023 to USD 2,250 million. Japan and Europe demonstrated growth, while other markets noted a negative trend³ . The dispensing equipment market grew 2.2 percent, reaching sales of USD 930 million⁴ in 2022 – figures for 2023 are not yet available.

ASSEMBLY AUTOMATION AND TEST MARKET AREA

In die bonding, the market for optical components in data/telecommunication is assessed to have decreased by 8.1 percent in 2023, to USD 11.5 billion⁸ . The market is expected to recover in 2024 and post annual growth of 16.7 percent during the 2023-2028 period, to USD 24.8 billion⁸ . In electrical testing, the market for printed circuit boards and substrates is assessed to have declined by 15.0 percent in 2023, to USD 69.5 billion⁹ , and post annual growth of 2.0 percent during the 2022-2027 period to USD 90.4 billion⁹ .

PATTERN GENERATORS MARKET AREA

PHOTOMASKS FOR DISPLAYS

The market is estimated to have grown by 0.8 percent in 2023, from USD 883 million to USD 890 million5,10. The market has remained at a high level following a very strong 2022 and display manufacturers continued to develop new LCD and AMOLED displays at a good pace. The market continued to be driven by an ongoing shift towards a higher proportion of advanced displays that require more, and more advanced, photomasks. The expectations for 2024 are that the photomask market will grow by 1.4 percent to USD 903 million5,10. The forecast for the total area growth amounts to an average of 1.7 percent per year for 2023- 2027⁵ . Stronger growth for AMOLED photomasks is expected, with an annual average area growth of 2.7 percent for 2023-2027⁵ , which drives the need for photomasks produced by advanced mask writers.

PHOTOMASKS FOR SEMICONDUCTORS

For 2023, the assessment is that the market continued to show good growth of 13.0 percent to USD 8.3 billion⁶ . The market trend was mixed, with some segments and regions performing strongly, although there were also weaker segments, particularly the market for memory chips. The expectations for 2024 are that the market will perform positively, with growth of 8.7 percent to USD 9.0 billion⁶ . The market value will continue to be primarily driven by the volume trend for the most advanced photomasks, which are mainly produced by E-beam mask writers. The market for mature design nodes, addressed by laser-based mask writers, is also expected to develop positively.

• 1) Prismark, latest forecast December 2023
• 2) Omdia, latest forecast January 2024
• 3) Protec MDC, January 2024
• 4) Prismark, March 2023
• 5) Omdia, July 2023 (annual update)
• 6) TechInsights, November 2023
• 7) Protec MDC, April 2023, Mycronic analysis
• 8) Lightcounting, October 2023
• 9) Prismark, November 2023
• 10) 145 YEN/USD used by Mycronic for conversion

Other

PARENT COMPANY

Mycronic AB is the Group's Parent Company.

The Parent Company's net sales amounted to SEK 3,195 (2,450) million for the full year. EBIT amounted to SEK 767 (571) million

Cash and cash equivalents at the end of the year amounted to SEK 1,371 million, compared with SEK 687 million at the end of 2022.

NOMINATION COMMITTEE

The Nomination Committee for Mycronic's 2024 Annual General Meeting has been appointed in accordance with the instructions for the Nomination Committee as decided by the 2023 Annual General Meeting. The Nomination Committee comprises: Henrik Blomquist (Bure Equity), Patrik Jönsson (SEB Fonder), Thomas Ehlin (Fourth AP Fund), and Patrik Tigerschiöld (Chairman of Mycronic). The Nomination Committee represented 45.4 percent of votes and shares as of August 31, 2023.

ANNUAL GENERAL MEETING 2024

The Annual General Meeting will be held on May 8, 2024. The notification will be sent out in due course.

In line with the dividend policy, the Board of Directors is proposing to the Annual General Meeting a dividend of SEK 4.50 (3.50) per share, totaling SEK 440.6 (342.7) million.

The record date for entitlement to the dividend is proposed as May 13, 2024. Provided the Meeting resolves in favor of the dividend proposal, the dividend will be paid on May 16, 2024.

FINANCIAL INFORMATION

Mycronic AB (publ) is listed on Nasdaq Stockholm, Large Cap. The information in this report is published in accordance with the EU Market Abuse Regulation. The

information was submitted for publication, through the contact persons stated below, at 8:00 a.m. CET on February 8, 2024.

Financial reports and press releases are published in Swedish and English and are available at www.mycronic.com.

This report was not reviewed by the company's auditor.

PRESENTATION

Mycronic will hold a presentation at 10:00 a.m. CET on February 8, 2024, with President and CEO Anders Lindqvist and CFO and Sr VP Corporate Development Pierre Brorsson. The presentation will be webcast.

FINANCIAL CALENDAR

Annual and Sustainability Report 2023 April 3, 2024 Interim Report January–March 2024 April 18, 2024 Annual General Meeting 2024 May 8, 2024 Interim Report January–June 2024 July 12, 2024 Interim Report January–September 2024 October 24, 2024

Year-end report 2024 February 6, 2025

FOR ADDITIONAL INFORMATION, PLEASE CONTACT

Anders Lindqvist President and CEO Tel: +46 8 638 52 00

E-mail: anders.lindqvist@mycronic.com

Pierre Brorsson CFO and Sr VP Corporate Development

Tel: +46 8 638 52 00

E-mail: pierre.brorsson@mycronic.com

Sven Chetkovich Director Investor Relations Tel: +46 70 558 39 19

E-mail: sven.chetkovich@mycronic.com

The Board of Directors and CEO certify that this year-end report provides a true and fair picture of the business activities, financial position and results of operations of the Parent Company and the Group and describes the significant risks and uncertainties to which the Parent Company and the Group are exposed.

Täby, February 8, 2024 Mycronic AB (publ)

Anders Lindqvist President and CEO

Patrik Tigerschiöld Arun Bansal Anna Belfrage Chairman Board member Board member

Katarina Bonde Staffan Dahlström Robert Larsson Board member Board member Board member

Bo Risberg Jörgen Lundberg Sahar Raouf

Board member Employee representative Employee representative

Mycronic AB (publ)

PO Box 3141 SE-183 03 Täby, Sweden

Tel: +46 8 638 52 00 Fax: +46 8 638 52 90 www.mycronic.com Reg office: Stockholm Reg no: 556351-2374 VAT no: SE556351237401

Group

Consolidated profit and loss accounts in summary, SEK million		Q4		Jan-Dec
	Note	2023	2022	2023	2022
Net sales	5, 6	1,968	1,497	5,706	5,119
Cost of goods sold		-905	-825	-2,850	-2,831
Gross profit		1,063	672	2,855	2,288
Research and development	7	-174	-175	-653	-638
Selling expenses		-161	-166	-658	-611
Administrative expenses		-106	-87	-338	-278
Other income and expenses		-2	18	28	133
EBIT		620	262	1,235	894
Financial income and expenses		15	1	27	-4
Profit/loss before tax		635	263	1,262	890
Tax		-125	-16	-266	-154
Net Profit/loss		510	247	996	737
Earnings per share before dilution, SEK		5.23	2.56	10.22	7.59
Earnings per share after dilution, SEK		5.23	2.56	10.22	7.59
Results attributable to owners of the Parent Company		510	250	998	741
Results attributable to non-controlling interests		0	-3	-2	-4
		510	247	996	737

		Q4		Jan-Dec
Consolidated statement of comprehensive income in summary, SEK million	2023	2022	2023	2022
Net Profit/loss	510	247	996	737
Other comprehensive income
Items not to be reclassified to profit/loss, after tax
Actuarial profit/loss from defined benefits to employees	-4	0	-4	0
Items to be reclassified to profit/loss, after tax
Translation differences at translating foreign entities	-153	-69	-126	234
Changes in cash flow hedges	107	91	59	31
Total comprehensive income	460	269	925	1,001
Total comprehensive income attributable to owners of the Parent Company	462	274	929	1,003
Total comprehensive income attributable to non-controlling interests	-2	-5	-4	-2
	460	269	925	1,001

Consolidated statements of financial position in summary, SEK million	31 Dec 23	31 Dec 22
ASSETS
Fixed assets
Intangible assets	2,292	2,374
Property, plant and equipment	495	513
Non-current receivables	58	66
Deferred tax assets	175	193
Total non-current assets	3,021	3,145
Current assets
Inventories	1,602	1,433
Trade receivables	1,270	1,143
Other current receivables	308	346
Cash and cash equivalents	2,140	1,274
Total current assets	5,319	4,195
Total assets	8,340	7,340
EQUITY AND LIABILITIES
Equity	5,282	4,703
Non-current liabilities
Non-current interest-bearing liabilities	150	193
Deferred tax liabilities	359	335
Other non-current liabilities	43	48
Total non-current liabilities	551	575
Current liabilities
Current interest-bearing liabilities	78	77
Trade payables	388	310
Other current liabilities	2,041	1,675
Total current liabilities	2,507	2,062
Total liabilities	3,058	2,637
Total equity and liabilities	8,340	7,340

		Q4		Jan-Dec
Consolidated cash flow statements in summary, SEK million	2023	2022	2023	2022
Profit/loss before tax	635	263	1,262	890
Adjustments for non-cash items and
paid income tax	114	83	209	75
Change in working capital	-186	90	138	-113
Cash flow from operating activities	563	437	1,608	853
Cash flow from investing activities	-56	-36	-195	67
Cash flow from financing activities	-17	-16	-447	-382
Cash flow for the period	491	384	966	537
Cash and cash equivalents, opening balance*	1,745	906	1,274	692
Exchange difference for cash and cash equivalents	-96	-16	-100	44
Cash and cash equivalents, closing balance	2,140	1,274	2,140	1,274

^*At the beginning of 2022, cash and cash equivalents include cash and cash equivalents classified as assets held for sale.

		Jan-Dec
Consolidated statement of changes in equity in summary, SEK million	2023	2022
Opening balance	4,703	3,997
Dividend to owners	-343	-294
Swap agreement related to own shares	9	5
Repurchase of own shares	-26	-16
Equity-settled share based payments	14	9
Total comprehensive income	925	1,001
Closing balance	5,282	4,703
Of which holdings of non-controlling interests	36	40

		Jan-Dec
Other key figures *	2023	2022
Equity per share, SEK	54.12	48.17
Return on equity (rolling 12 months), %	20.0%	16.9%
Return on capital employed (rolling 12 months), %	24.3%	19.6%
Net cash, SEK million	1,912	1,004
Average number of employees	2,027	2,002

^*In addition to key figures presented on page 1. See calculations on page 19.

Parent Company

		Q4		Jan-Dec
Profit/loss accounts in summary, Parent Company, SEK million	2023	2022	2023	2022
Net sales	1,292	884	3,195	2,450
Cost of goods sold	-527	-446	-1,423	-1,279
Gross profit	765	439	1,773	1,171
Other operating expenses	-365	-302	-1,006	-600
EBIT	400	136	767	571
Result from financial items	348	13	421	108
Profit/loss after financial items	747	150	1,187	679
Appropriations	-74	-24	-74	-24
Profit/loss before tax	674	125	1,113	655
Tax	-73	-30	-160	-127
Net Profit/loss	601	95	953	528

		Q4		Jan-Dec
Statement of comprehensive income, Parent Company, SEK million	2023	2022	2023	2022
Net Profit/loss	601	95	953	528
Other comprehensive income	-	-	-	-
Total comprehensive income	601	95	953	528

Balance sheets in summary, Parent Company, SEK million	31 Dec 23	31 Dec 22
ASSETS
Fixed assets
Intangible and tangible assets	216	147
Financial assets	3,056	2,959
Total fixed assets	3,272	3,106
Current assets
Inventories	752	542
Current receivables	954	722
Cash and cash equivalents	1,371	687
Total current assets	3,077	1,951
TOTAL ASSETS	6,349	5,057
EQUITY AND LIABILITIES
Equity	3,327	2,719
Untaxed reserves	1,374	1,300
Non-current interest-bearing liabilities	-	-
Other non-current liabilities	2	2
Total non-current liabilities	2	2
Current interest-bearing liabilities	-	-
Other current liabilities	1,647	1,036
Total current liabilities	1,647	1,036
TOTAL EQUITY AND LIABILITIES	6,349	5,057

Notes

NOTE 1 ACCOUNTING POLICIES

This interim report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting, along with applicable provisions in the Swedish Annual Accounts Act. The report for the Parent Company has been prepared in accordance with Chapter 9 of the Swedish Annual Accounts Act. For the Group and Parent Company, accounting policies, valuation policies and assumptions were applied in accordance with the latest annual report. The accounting policies of the segments are the same as for the Group, with the exception of IFRS 16 Leases. The segments and the Parent Company recognize lease payments as a cost on a straight-line basis over the term of the lease. The right-of-use asset and the lease liability are thus not reported in the balance sheet.

During the third quarter, High Flex took over global responsibility for China-based HC Xin from High Volume, while High Volume took over global responsibility for both the MYSmart dispensing products and the Mexico office from High Flex. Comparative figures for 2022 and the first two quarters of 2023 are restated in this year-end report.

The nature of financial assets and liabilities is, in all material respects, the same as on December 31, 2022. The carrying amounts and fair values are deemed to essentially correspond with one another.

NOTE 2 RELATED PARTY TRANSACTIONS

A description of related party transactions can be found in Note 8 of the 2022 Annual Report. The scope and nature of these transactions did not change significantly during the period.

NOTE 3 RISKS AND UNCERTAINTIES

The Group's business is exposed to a number of risks and uncertainties that are both operational and financial in nature, which are in all material aspects the same as presented in the 2022 Annual Report. For example, Mycronic is exposed to country-specific risks such as political decisions or overarching changes to the regulatory framework, both geographically and product-wise.

NOTE 4 EVENTS AFTER THE END OF THE PERIOD

After the end of the period, four orders were received, for one Prexision 8 Evo and four SLXs. In addition, a revolving credit facility with Handelsbanken for SEK 1,000 million was extended by an additional year, until May 2026.

NOTE 5 REVENUE FROM CONTRACTS WITH CUSTOMERS

		Q4	Jan-Dec
Revenue by geographical market, SEK million	2023	2022	2023	2022
EMEA	276	264	919	810
North and South America	326	302	1,162	868
Asia	1,366	932	3,625	3,441
	1,968	1,497	5,706	5,119
Revenue by type of good/service, SEK million
System	1,533	1,082	4,077	3,599
Aftermarket	435	415	1,629	1,520
	1,968	1,497	5,706	5,119
Timing of revenue recognition, SEK million
Goods transferred at a point in time	1,686	1,236	4,643	4,132
Services transferred over time	282	261	1,063	987
	1,968	1,497	5,706	5,119

NOTE 6 OPERATING SEGMENT REPORTING

		Q4		Jan-Dec
SEK million	2023	2022*	2023*	2022*
Net sales by Division
Pattern Generators	878	455	2,106	1,369
High Flex	477	446	1,535	1,405
High Volume	306	373	1,140	1,479
Global Technologies	310	224	928	865
Internal net sales between divisions	-3	-	-3	-
	1,968	1,497	5,706	5,119
EBIT by Division
Pattern Generators	510	154	1,053	465
High Flex	96	61	195	161
High Volume	32	89	173	301
Global Technologies	37	6	59	101
Group functions etc	-55	-48	-249	-137
Effects from IFRS 16	1	0	4	3
Group	620	262	1,235	894

SEK million	31 Dec 23	31 Dec 22*
Assets by Division
Capitalized Development Costs
Pattern Generators	65	56
High Flex	75	62
	140	118
Inventories
Pattern Generators	519	406
High Flex	392	327
High Volume	457	447
Global Technologies	235	254
Unrealized profit in inventories	-2	-1
	1,602	1,433
Trade Receivables
Pattern Generators	571	359
High Flex	328	317
High Volume	243	328
Global Technologies	129	138
	1,270	1,143

^*Restated for comparability, see Note 1.

NOTE 7 RESEARCH AND DEVELOPMENT COSTS

	Q4		Jan-Dec
Research and development costs, SEK million	2023	2022*	2023*	2022*
R&D expenditures
Pattern Generators	-74	-61	-255	-219
High Flex	-55	-57	-214	-205
High Volume	-34	-29	-128	-131
Global Technologies	-22	-21	-82	-71
	-183	-167	-679	-626
Capitalization of Development Costs
Pattern Generators	7	1	27	2
High Flex	12	5	36	28
	19	6	63	30
Amortization of Acquired Technology
High Flex	-1	-2	-6	-7
High Volume	0	-1	-4	-5
Global Technologies	-7	-7	-28	-26
	-9	-10	-38	-38
Impairment of Acquired Technology
High Flex	-	-4	-	-4
Reported cost	-174	-175	-653	-638

^*Restated for comparability, see Note 1.

NOTE 8 DEFINITIONS AND RECONCILIATION ALTERNATIVE PERFORMANCE MEASURES, ETC

The European Securities and Markets Authority (ESMA) has issued guidelines regarding alternative performance measures for listed companies.

These relate to financial key figures used by management, to control and evaluate the Group's business, which cannot be directly inferred from the financial statements. Alternative performance measures are also considered to be of interest to external investors and analysts who monitor the company. For definitions of other key ratios, please refer to the Annual Report.

Acquisition-related costs

Acquisition-related costs include expensing of acquired inventories at fair value, amortization and impairment of acquired intangible assets, changes in value and revaluation of contingent considerations and transaction expenses.

Book-to-bill

Order intake in relation to net sales. Indicates future development of net sales.

Capital employed

Balance sheet total less non-interest bearing liabilities. Used to show a company's ability to meet capital needs from operations.

Earnings per share

Net result attributable to the owners of the Parent Company divided by the average number of outstanding shares before and after dilution. Used to show a company's results per share.

EBITDA

Operating result, EBIT, before depreciation and amortization.

Equity per share

Equity on balance day divided by the number of outstanding shares at the end of the period. Used to measure the value of the company per share.

Net cash

Cash and cash equivalents less interest-bearing liabilities.

Order backlog

Remaining orders for goods, valued at the closing date exchange rate. Used to show secured future net sales of goods.

Order intake

Received orders for goods and services, valued at average exchange rates. The order intake also includes revaluation of the order backlog at closing date exchange rates. Used to show orders received.

Organic growth

Change in net sales, excluding increase related to acquisitions and decrease related to divestments, recalculated to the previous year's currency rates as a percentage of the previous year's net sales. Net sales from acquired companies are included in the calculation of organic growth as of the first day of the first month which falls 12 months after the date of acquisition.

Return on capital employed

Earnings before financial expenses as a percentage of average capital employed. Used to show return on capital needed for operations.

Return on equity

Net profit/loss as a percentage of average equity. Used to demonstrate return on shareholder capital over time.

Underlying EBIT and underlying EBIT margin

Underlying EBIT consists of operating result excluding acquisition-related costs and gains/losses from divestments of subsidiaries. The underlying EBIT margin is underlying EBIT as a percentage of net sales. Used to describe how operations are developing and performing excluding acquisition-related costs and gains/losses from divestments.

	Jan-Dec
Return on equity	2023	2022
Net profit/loss (rolling 12 months)	996	737
Average shareholders' equity	4,993	4,350
	20.0%	16.9%
Return on capital employed
Profit/loss before tax (rolling 12 months)	1,262	890
Financial expenses	13	13
Profit/loss before financial expenses	1,275	904
Average balance sheet total	7,840	6,738
Average non-interest-bearing liabilities	2,599	2,132
Average capital employed	5,241	4,607
	24.3%	19.6%
Book-to-bill
Order intake	6,280	6,783
Net sales	5,706	5,119
	1.1	1.3
EBITDA
EBIT	1,235	894
Depreciation/Amortization	264	253
	1,499	1,147
Underlying EBIT
EBIT	1,235	894
Acquisition-related costs included in:
Cost of goods sold	-	-
Operating expenses	63	67
	63	67
Gains from divestments of subsidiaries	-	-23
	1,298	939
Equity per share
Equity at balance day	5,282	4,703
No. of outstanding shares at end of period, thousand	97,597	97,631
	54.12	48.17
Earnings per share before/after dilution, SEK
Net Profit/loss attributable to owners of the Parent Company	998	741
Average no. of outstanding shares before dilution, thousand	97,610	97,597
Average no. of outstanding shares after dilution, thousand	97,636	97,610
	10.22	7.59
Net cash, SEK million Cash and cash equivalents	2,140	1,274
Interest-bearing liabilities	-227	-270
	1,912	1,004

Quarterly data	Q4 23	Q3 23	Q2 23*	Q1 23*	Q4 22*	Q3 22*	Q2 22*	Q1 22*
Order intake
Pattern Generators	513	561	804	816	1,829	718	176	383
High Flex	359	407	349	387	322	354	360	376
High Volume	276	249	350	226	213	306	446	423
Global Technologies	303	250	246	189	164	232	222	260
Internal order intake between divisions	-3	-	-	-	-	-	-	-
	1,448	1,467	1,748	1,617	2,529	1,609	1,203	1,441
Order Backlog
Pattern Generators	3,068	3,433	3,307	2,945	2,480	1,106	635	807
High Flex	120	239	209	207	155	279	278	240
High Volume	662	692	688	584	700	858	950	862
Global Technologies	297	305	272	236	239	298	284	308
	4,149	4,669	4,475	3,972	3,574	2,542	2,146	2,217
Net Sales
Pattern Generators	878	435	442	351	455	246	348	320
High Flex	477	378	347	334	446	352	322	285
High Volume	306	244	247	342	373	398	357	352
Global Technologies	310	216	209	192	224	218	246	179
Internal net sales between divisions	-3
	1,968	- 1,274	- 1,245	- 1,219	- 1,497	- 1,214	- 1,273	- 1,135
Gross Profit
Pattern Generators	600	286	283	220	247	154	193	188
High Flex	221	156	132	131	185	141	130	114
High Volume	121	101	108	151	154	163	154	130
Global Technologies	122	80	73	68	83	85	102	64
	1,063	623	599	570	672	541	578	496
Gross Margin
Pattern Generators	68.4%	65.9%	64.0%	62.5%	54.4%	62.5%	55.4%	58.8%
High Flex	46.2%	41.3%	38.1%	39.2%	41.5%	40.1%	40.4%	40.1%
High Volume	39.7%	41.5%	43.8%	44.1%	41.3%	41.1%	43.0%	37.0%
Global Technologies	39.2%	36.9%	35.1%	35.5%	37.1%	38.9%	41.5%	35.6%
	54.0%	48.9%	48.1%	46.8%	44.9%	44.6%	45.4%	43.7%
R&D expenses
Pattern Generators	-66	-56	-56	-50	-60	-49	-60	-48
High Flex	-45	-40	-50	-49	-58	-45	-45	-40
High Volume	-34	-33	-28	-37	-30	-37	-36	-33
Global Technologies	-29	-29	-28	-24	-28	-23	-22	-24
Total R&D expenses	-174	-158	-162	-160	-175	-154	-164	-145
Selling expenses	-161	-130	-193	-173	-166	-157	-155	-132
Administrative expenses	-106	-72	-88	-72	-87	-65	-64	-62
Other income/expenses	-2	-1	15	16	18	37	28	49
EBIT	620	263	170	182	262	203	224	206
Of which EBIT Pattern Generators	510	203	191	149	154	76	110	125
Of which EBIT High Flex			12
Of which EBIT High Volume	96 32	60 41	41	26 60	61 89	45 94	36 64	20 54
Of which EBIT Global Technologies
	37	10	9	3	6	22	43	31
Of which EBIT Group functions etc	-55	-52	-85	-57	-48	-34	-30	-25
EBIT margin	31.5%	20.6%	13.7%	14.9%	17.5%	16.7%	17.6%	18.1%
Equity per share	54.12	49.36	47.76	50.02	48.17	45.40	43.16	43.29
Earnings per share before/after dilution	5.23	2.10	1.37	1.52	2.56	1.56	1.79	1.69
Closing share price	287.40	226.00	267.00	254.80	195.80	135.00	143.90	176.00

^*Restated for comparability, see Note 1.