INVISIO

Earnings Release • Feb 13, 2024

Strong end to 2023 and a promising start to 2024

The positive trend continued during the final quarter of the year. Revenue reached a record SEK 346 million (289), and on an annualized basis exceeded SEK 1.2 billion (776 million). A strong order book exceeding SEK 600 million ensures a solid start to 2024. This performance testifies to the success of the investments that we have implemented in recent years and puts us in a strong position to take advantage of the opportunities offered by market conditions.

Lars Højgård Hansen, CEO

Important events during the quarter

• Revenue in Q4 was INVISIO's highest for any single quarter, totaling SEK 345.8 million (289.2). Full-year revenue of SEK 1,238.5 million (775.5) was also a record.

Significant events after the quarter

• Launch of the X7, our next-generation in-ear headset with AI enhancement.
• The board of directors proposes a dividend of SEK 1.30 (0.70) per share.

	Q4			Full year
SEK million	2023	2022	∆ %	2023	2022	∆ %
Revenue	345.8	289.2	20	1.238.5	775.5	60
Gross profit	198.5	166.0	20	747.3	449.7	66
Gross margin. %	57.4	57.4		60.3	58.0
EBITDA	84.6	72.5	17	308.2	113.0	173
EBITDA margin. %	24.5	25.1		24.9	14.6
Operating profit	62.4	59.8	4	242.9	65.2	273
Operating margin. %	18.0	20.7		19.6	8.4
Profit/loss for the period	50.9	42.7	19	178.4	44.5	301
Earnings per share for the period. SEK	1.12	0.95	18	3.91	0.99	294
Cash flow from operating activities	36.8	26.1	41	204.7	41.7	391
Order intake	298.0	296.4	1	1,273.5	1,141.6	12
Order book	602.8	624.7	–4	602.8	624.7	–4

CEO's comments

A strong end to 2023 and a promising start to 2024

INVISIO's positive trajectory continued during the last quarter of the year. Revenue totaled SEK 345.8 million (289.2), and on an annualized basis exceeded SEK 1.2 billion. This represents an increase of 60 percent compared to last year. Order inflow was also strong during the quarter, totaling almost SEK 300 million. The order book topped SEK 600 million at the end of the quarter, giving us a solid start to 2024.

Our performance in revenue and order intake testifies to the success of the investments in product development and marketing that we have implemented in recent years. We have today a strong market position and are in all respects a more mature company. We are thus well equipped to benefit from the opportunities offered by current market conditions.

High levels of market activity

The activity level in our markets remains high, especially in Europe. However, it is important to emphasize that the current strong demand is not primarily a consequence of increasing defense budgets but mainly stems from customers' general and long-term modernization and updating of equipment.

An additional strengthened demand, as a result of increasing defense budgets, is not expected to have an impact until the latter part of 2024 and thereafter.

Strong profitability

In Q4 the gross margin was impacted by a couple of lower-margin deliveries executed through system integrators. The full-year gross margin was just over 60 percent, which was an improvement on 2022 and a clear indication that the higher component costs associated with the covid pandemic are now behind us.

Underlying operating costs continued to follow the stable trend that we have seen in recent years. However, Q4 expenses included an impairment loss of around SEK 7 million arising from a change in strategic direction for a development project.

The operating margin was 18.0 percent (20.7) during the quarter, and excluding the project impairment loss was 20.0 percent.

For the full year, the operating margin was almost 20 percent (8.4).

Strong market for military vehicles

Sales of Racal Acoustics branded products were very strong during the year.

A combination of intensive activity in the vehicle market, the launch of the RA4000 Magna digital headset and a gradual market withdrawal by one of the largest North American providers delivered a strong rise in sales.

We anticipate that the product portfolio will enjoy highly attractive market conditions in the next few years.

High interest in Intercom system

During the year we received a number of significant orders for our Intercom system. Together, these exceeded SEK 100 million in value. Interest in the solution remains high and a number of customers in Europe and the US are currently evaluating it. This should lead to more major orders in 2024.

We are confident that the Intercom system will account for a significant portion of total group revenue over the long term.

Law enforcement and security market

We continued to address the law enforcement and security market throughout 2023. In this area, too, we received a large number of orders during the year, and new tests were carried out. This creates a strong platform for a continued positive trend in this area.

In 2024 we will selectively address the firefighting market, where a demanding user environment ensures strong need for our solutions.

X7 – our next-generation in-ear headset

The start of 2024 saw the launch of the X7, our next-generation in-ear headset with AI enhancement. The product, developed using the latest technology and drawing on extensive input from users in the field, features a range of new functions and an ergonomic design that is perfectly tailored to the human ear.

The headset sets a new professional benchmark and gives users a tactical advantage when performing the most demanding tasks in the most challenging environments. We expect strong sales of this product in 2024.

Focus on security issues and positive future outlook

The highly uncertain geopolitical landscape continues to keep defense and security issues high on the agenda, while a major need exists for modern communications equipment in many countries. These factors lead us to expect a continued high level of demand in 2024 and for several years to come.

Lars Højgård Hansen, CEO

SEK 298m

Order intake, Q4 2023

SEK 603m

Order book, Q4 2023

SEK 346m

Revenue, Q4 2023

18%

Operating margin, Q4 2023

60%

Revenue growth, R12

20%

Operating margin, R12

Order intake, sales and profit

O4 2023

Order intake in the fourth quarter totaled SEK 298.0 million (296.4). At year-end the order book stood at SEK 602.8 million (624.7), most of which will be delivered in the coming quarters.

Revenue in Q4 rose to SEK 345.8 million (289,2), an increase of 20 percent compared to the same period last year and the highest figure for a single quarter. In comparable currencies, revenue increased by 13 percent.

Gross profit totaled SEK 198.5 million (166.0) and the gross margin was 57.4 percent (57.4). The gross margin was a slightly lower in Q4 than in previous quarters during the year. This was due to somewhat lower margins attached to a number of deliveries conducted via system integrators.

Q4 revenue by region (%)

See Note 2 for further information.

Operating expenses including depreciation and amortization were SEK 136.2 million (106.2).

INVISIO works closely with its most important customers in projects to develop new technologies and innovations. In Q4 the group decided to change its strategic focus within one such project, leading to an impairment loss of SEK 6.8 million.

EBITDA was SEK 84.6 million (72.5), equivalent to a margin of 24.5 percent (25.1).

Development costs of SEK 4.3 million (9.0) were capitalized during the quarter.

Depreciation in the quarter totaled SEK 22.2 million (12.7). Depreciation and amortization expenses relating to completed development projects totaled SEK 6.0 million (5.6). Of the remaining SEK 16.2 million (7.0), SEK 3.3 million (3.1) related to amortization of other intangible assets, SEK 3.6 million (2.4) to amortization of rights of use (leases), SEK 2.5 million (1.5) to depreciation of property, plant and equipment, and SEK 6.8 million (-) to the impairment loss on capitalized development costs. See Note 3 for further information

Operating profit (EBIT) was SEK 62.4 million (59.8) and the operating margin was 18.0 percent (20.7). Notwithstanding two years of pandemic-related impacts, the average operating margin for the last 20 quarters stood at 15.4 percent.

Net financial income was SEK 3.8 million (-4.3).

Order intake in the quarter and R12 (SEK million)

Revenue in the quarter and R12 (SEK million)

Gross margin in the quarter and R12 (%)

Order book in the quarter and R12 (SEK million)

Operating expenses in the quarter and R12 (SEK million)

Operating margin in the quarter and R12, EBITDA margin R12 (%)

YEAR-END BULLETIN 2023

Order intake, sales and profit (ctd.)

Profit before tax was SEK 66.1 million (55.5) and net profit for the period totaled SEK 50.9 million (42.7).

Earnings per share were SEK 1.12 (0.95).

Full year 2023

Revenue in 2023 totaled SEK 1,238.5 million (775.5), an increase of 60 percent compared to 2022. In comparable currencies, revenue increased by 51 percent.

Gross profit totaled SEK 747.3 million (449.7) and the gross margin was 60.3 percent (58.0).

Operating expenses including depreciation and amortization were SEK 504.5 million (384.5). Much of this increase relates to measures taken in 2023 to strengthen the organization by recruiting 40 people, particularly in sales

14%

Average annual R&D investments in 2019–2023 totaled 14 percent of annual revenue.

and product development, and an increased marketing footprint that included attendance at more than 60 trade fairs.

Operating expenses included depreciation and amortization costs of SEK 65.3 million (47.8). Over 35 percent of the increase related to the development project impairment loss.

Development costs of SEK 32.4 million (23.9) were capitalized during the period.

EBITDA was SEK 308.2 million (113.0), equivalent to a margin of 24.9 percent (14.6).

Operating profit totaled SEK 242.9 million (65.2) and the operating margin was 19.6 percent (8.4).

Net financial income was SEK –1.0 million (–2.7). Profit before tax was SEK 241.9 million (62.5) and net profit for the period was SEK 178.4 million (44.5).

Earnings per share were SEK 3.91 (0.99).

Cash flow, investments and financial position

Cash flow and investments

Group cash flow in Q4 was SEK 21.1 million (6.6), with cash flow from operating activities accounting for SEK 36.8 million (26.1).

Cash flow for the full year was SEK 101.3 million (–17.0), with cash flow from operating activities totaling SEK 204.7 million (41.7).

Inventory value increased to SEK 238.2 million (144.4), reflecting an increase in upcoming deliveries. INVISIO's capacity for fast delivery gives the group a competitive advantage and is in part a consequence of maintaining a relatively large stock of standard products.

Cash flow from investing activities in 2023 was SEK –55.0 million (–33.5). This increase related primarily to higher capitalized product development expenses as the group's planned investments in proprietary products progressed as scheduled. For the full year, the cash flow effect of capitalized expenses was SEK -32.4 million (-23.9).

Purchases of property, plant and equipment had a cash flow effect of SEK -21.0 million (-9.6).

Cash flow from financing activities in 2023 was SEK –48.5 million (–25.1).

Cash and cash equivalents and financial position

INVISIO is debt-free following the loan repayment made during Q2. At the end of the period, group cash and cash equivalents totaled SEK 224.9 million (127.1)

Equity was SEK 720.4 million (510.0), equal to an equity/assets ratio of 68 percent (64).

Cash flow from operating activities in the quarter and R12 (SEK million)

Other information

Parent company

The parent company reported revenue in 2023 of SEK 0.1 million (0.1). Operating profit was SEK –12.5 million (–11.6).

Net financial income totaled SEK 50.4 million (37.0), which included dividends from subsidiaries of SEK 52.5 million during Q2.

Cash and bank balances were SEK 39.6 million (5.0) at the close of the period. Equity of SEK 356.6 million (281.9) resulted in an equity/assets ratio of 98 percent (80).

The parent company had 1 employee (1) at the end of the period.

Employees

Group employees, restated as full-time equivalents, totaled 248 (208) at 31 December. The breakdown was 206 male (169) and 42 female employees (39).

As in many technology companies, INVISIO has a relatively low ratio of female employees. The company's stated ambition is for both genders to be represented on candidate shortlists in all recruitment processes. The long-term goal is to achieve greater gender parity within the organization.

Material risks and uncertainties

A variety of external and internal factors can impact the group's business activities and earnings. INVISIO operates a continuous process to identify all risks and how each should be managed. Risks are grouped as follows: market-based; operating; sustainability and climate-related; and financial.

For a more detailed description of these risks, please refer to the 2022 annual report.

Financial instruments

The fair value of the group's financial assets and liabilities is estimated to be equal to book value.

Dividend

The board of directors proposes a dividend of SEK 1.30 (0.70) per share for 2023.

The board's dividend policy requires dividend payments to take account of INVISIO's long-term growth, profitability and capital needs and also to consider the group's financial targets. Over time, INVISIO aims to distribute between 25 and 50 percent of profit after tax as dividends.

The group has distributed a total of SEK 162 million to shareholders in the last five years, which equates to 60 percent of the company's aggregate profit after tax of SEK 270 million during this period. Including the dividend proposed for this year, the figure is 49 percent.

Review

This year-end bulletin has not been reviewed by the group's auditors.

Annual general meeting 2023

INVISIO's annual general meeting will take place in Stockholm on May 7, 2024 at 16:00.

Shareholders wishing to have a matter considered at the AGM should send a written request by email to ir@invisio.com or by ordinary mail to: Board of Directors, INVISIO AB, Box 151, 201 21 Malmö.

Any request must be received at least seven weeks before the AGM in order to be included in the notice to attend and meeting agenda.

Stockholm, February 13, 2024 Lars Højgård Hansen, CEO

INVISIO in brief

INVISIO's core business is to develop and market advanced communication systems that help professionals in noisy and mission-critical environments to work more safely and effectively while protecting their hearing.

Personal system and Intercom solution

INVISIO's offer consists of personal communication systems for use in the field and in vehicles, and an Intercom system for use in various forms of transport.

The personal communication equipment reduces high noise levels and enables disruption-free communication in noisy and mission-critical environments.

The Intercom system makes it possible for personal equipment users to communicate within their team and with others while on the move.

Products are marketed under the INVISIO and Racal Acoustics brands.

A growing niche market

INVISIO primarily serves customers in the defense, law enforcement and security industries in the US and Europe and selected countries in Asia. The company estimates the total addressable market for personal equipment and the Intercom system to be worth around SEK 14 billion annually.

Around 85 percent of revenue comes from European and US defense customers. However, the company sees steadily increasing business opportunities in the law enforcement and security markets, as well as in new geographical markets.

Sales primarily through own channels

Sales are driven by head office teams in Copenhagen and by INVISIO sales offices in the US, France, Italy, the UK and Thailand. A global network of partners and resellers also sells the group's products.

Major business transactions are normally via procurement processes. These procedures are often time-consuming due to extensive customer testing and administrative processes.

INVISIO has long-term framework agreements with customers in the US, Canada, the UK, Australia, Sweden and Denmark, among others.

Uneven order and revenue flow and variable delivery times

Order intake and sales can fluctuate between quarters and the company's development should therefore be evaluated over a longer timeframe than any single quarter or year.

For INVISIO branded products, deliveries are usually within two to six months. For Racal

Acoustics solutions, it is not uncommon for an initial part-delivery to be made within six months and for remaining deliveries to be completed only after one to three years, in line with the customer's roll-out plans and vehicle deliveries.

Organization geared to core business

INVISIO focuses on product development and sales, with European contract manufacturers handling most of the production.

Outsourcing manufacturing to external partners ensures the flexibility to manage variations in order volume.

High growth with sound profitability

INVISIO is a growth company whose financial targets are average sales growth of 20 percent per year and an operating margin exceeding 15 percent over time.

Despite two years of disruption arising from the covid pandemic, average annual sales grew by 19 percent in the five-year period from 2019 to 2023, while the operating margin averaged above 15 percent in the same timeframe.

The share is listed on Nasdaq Stockholm in the Mid Cap segment.

Facilitating secure communication with full hearing protection in critical situations enables INVISIO to create value for individuals as well as for society at large.

Users

• Safer work environment
• Increased operational capacity
• Prevention of lifelong hearing loss and related problems

Society

• Higher efficiency
• Lower costs for rehabilitation and hearing loss compensation

Condensed consolidated income statement and consolidated statement of comprehensive income

		Q4		Full year
SEK million	Note	2023	2022	2023	2022
Revenue	2	345.8	289.2	1,238.5	775.5
Cost of goods sold		–147.2	–123.2	–491.2	–325.7
Gross profit		198.5	166.0	747.3	449.7
Operating expenses*	3	–136.2	–106.2	–504.5	–384.5
Operating profit		62.4	59.8	242.9	65.2
Net financial items		3.8	–4.3	–1.0	–2.7
Profit before tax		66.1	55.5	241.9	62.5
Income tax	4	–15.2	–12.8	–63.5	–18.0
Profit/loss for the period		50.9	42.7	178.4	44.5
OTHER COMPREHENSIVE INCOME
Items that may subsequently be reclassified to profit or loss.
Translation differences from foreign opera tions for the period		–29.2	4.7	–4.7	38.7
Comprehensive income for the period		21.7	47.4	173.7	83.2
(Attributable to parent company shareholders)
* Operating expenses include depreciation	3	–22.2	–12.7	–65.3	–47.8

Share data

	Q4		Full year
	2023	2022	2023	2022
Earnings per share for the period, SEK	1.12	0.95	3.91	0.99
Earnings per share after dilution for the period, SEK	1.12	0.95	3.91	0.99
Equity per share, SEK	15.80	11.32	15.80	11.32
Equity per share after dilution, SEK	15.80	11.32	15.58	11.32
Equity/assets ratio, %	68	64	68	64
Number of shares, thousands	45,590	45,049	45,590	45,049
Average number of shares outstanding, thousands	45,590	45,049	45,366	44,838
Average number of outstanding shares after dilution, thousands	45,590	45,049	46,237	45,049
Share price at close of period, SEK	195.60	164.60	195.60	164.60

Condensed consolidated statement of financial position

SEK million	Note	Dec 31, 2023	Dec 31, 2022
ASSETS
Non-current assets
Goodwill		58.0	56.2
Capitalized development costs	3	110.7	103.5
Other intangible assets	3	67.7	79.2
Property, plant and equipment	3	32.9	20.8
Rights of use, leases	3	34.2	22.8
Long-term deposits for rent		4.3	2.7
Deferred tax assets	4	2.6	3.6
Total non-current assets		310.4	288.9
Current assets
Inventories		238.2	144.4
Trade receivables		219.5	194.5
Other current receivables		59.9	45.0
Cash and cash equivalents		224.9	127.1
Total current assets		742.5	511.0
TOTAL ASSETS		1,053.0	799.9

SEK million	Note	Dec 31, 2023	Dec 31, 2022
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity		720.4	510.0
Non-current liabilities
Liabilities to credit institutions		—	45.0
Lease liabilities		26.9	16.1
Deferred tax liabilities	4	37.6	34.6
Total non-current liabilities		64.4	95.6
Current liabilities Liabilities to credit institutions		—	20.0
Trade payables		97.1	63.7
Lease liabilities		10.9	8.7
Other current liabilities		160.1	101.9
Total current liabilities		268.1	194.3
TOTAL EQUITY AND LIABILITIES		1,053.0	799.9

SEK million	Note	Dec 31, 2023	Dec 31, 2022
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Opening balance		510.0	417.5
New issue through exercising employee stock options		58.6	36.0
Employee stock option program		9.6	4.5
Dividend		–31.5	–31.2
Comprehensive income		173.7	83.2
Closing balance		720.4	510.0

Condensed consolidated statement of cash flow

	Q4		Full year
SEK million	2023	2022	2023	2022
Operating activities
Profit/loss before tax	66.1	55.5	241.9	62.5
Adjustments for non-cash items	20.9	17.3	75.0	57.4
Income tax paid	–22.2	–8.9	–33.3	–19.0
Cash flow from operating activities before changes in working capital	64.9	64.0	283.6	100.9
Changes in inventories	–31.9	11.1	–98.5	–13.9
Changes in operating receivables	3.9	–53.8	–48.8	–81.9
Changes in operating liabilities	0.0	4.8	68.5	36.6
Cash flow from changes in working capital	–28.0	–37.8	–78.9	–59.2
Cash flow from operating activities	36.8	26.1	204.7	41.7
Investing activities
Capitalization of development costs	–4.3	–9.0	–32.4	–23.9
Purchases of property, plant, and equipment	–6.3	–3.3	–21.0	–9.6
Acquisition of financial assets	–0.8	0.0	–1.6	–0.1
Cash flow from investing activities	–11.4	–12.3	–55.0	–33.5

	Q4		Full year
SEK million	2023	2022	2023	2022
Financing activities
New issue through exercising employee stock options	—	—	58.6	36.0
Raising / amortization of loans	—	–5.0	–65.0	–20.0
Changes in lease liabilities	–4.4	–2.2	–10.6	–9.9
Dividend paid	—	—	–31.5	–31.2
Cash flow from financing activities	–4.4	–7.2	–48.5	–25.1
CASH FLOW FOR THE PERIOD	21.1	6.6	101.3	–17.0
Cash and cash equivalents at start of period	211.2	118.5	127.1	134.8
Translation differences in cash and cash equivalents	–7.3	1.9	–3.4	9.2
Cash and cash equivalents at end of period	224.9	127.1	224.9	127.1

Condensed parent company income statement

	Q4		Full year
SEK million	2023	2022	2023	2022
Revenue	0.0	0.0	0.1	0.1
Operating expenses	–3.5	–2.6	–12.5	–11.7
Operating profit	–3.4	–2.6	–12.5	–11.6
Net financial items*	0.7	39.3	50.4	37.0
Profit/loss before tax	–2.8	36.7	38.0	25.4
Income tax	—	—	—	—
Profit/loss for the period	–2.8	36.7	38.0	25.4
* Of which dividend from subsidiaries	—	40.0	52.5	40.0

Condensed parent company balance sheet

SEK million	Dec 31, 2023	Dec 31, 2022
ASSETS
Non-current assets
Participations in group companies	318.1	308.5
Total non-current assets	318.1	308.5
Current assets
Receivables from group companies	3.5	38.3
Other current receivables	1.6	0.4
Cash and bank balances	39.6	5.0
Total current assets	44.8	43.7
TOTAL ASSETS	362.9	352.2
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
Restricted equity	67.2	66.6
Non-restricted equity	289.4	215.3
Total shareholders' equity	356.6	281.9
Non-current liabilities
Liabilities to credit institutions	—	45.0
Total non-current liabilities	—	45.0
Current liabilities
Liabilities to credit institutions	—	20.0
Trade payables	1.3	0.3
Liabilities to group companies Other current liabilities	2.5 2.5	2.6 2.4
Total current liabilities	6.3	25.3
TOTAL EQUITY AND LIABILITIES	362.9	352.2

SEK million	Dec 31, 2023	Dec 31, 2022
PARENT COMPANY STATEMENT OF CHANGES IN EQUITY
Opening balance	281.9	247.2
New issue through exercising employee stock options	58.6	36.0
Employee stock option program	9.6	4.5
Dividend	–31.5	–31.2
Profit/loss for the period*	38.0	25.4
Closing balance	356.6	281.9
* Of which dividends from subsidiaries	52.5	40.0

Notes

Note 1 / Accounting policies and valuation principles

The year-end bulletin for the group was prepared in accordance with IAS 34, the Swedish Financial Reporting Board's Recommendation RFR 1, Supplementary Accounting Rules for Groups, and the Annual Accounts Act. The parent company's accounts were prepared in accordance with RFR 2, Accounting for legal entities and the Annual Accounts Act. The accounting policies applied are consistent with the policies described in INVISIO's annual report for 2022.

New standards

None of the new standards and amendments of interpretations and existing standards which are effective for financial years starting on or after January 1, 2023, are expected to have any significant impact on the group's financial statements.

Note 2 / Revenue by geographical area

	Q4		Full year
SEK million	2023	2022	2023	2022
Sweden	8.3	6.9	23.7	26.0
Europe	182.5	173.1	627.3	425.4
North America	143.2	77.2	502.2	247.8
Rest of the world	11.7	32.1	85.3	76.3
Total	345.7	289.2	1,238.5	775.5

Note 3 / Depreciation/amortization

	Q4		Full year
SEK million	2023	2022	2023	2022
Amortization of capitalized development costs	6.0	5.6	24.5	21.0
Amortization of other intangible assets*	3.3	3.1	13.1	12.9
Amortization of rights of use (leases)	3.6	2.4	12.3	8.4
Depreciation of property, plant and equipment	2.5	1.5	8.4	5.5
Write down of intangible assets	6.8	—	6.8	—
Total	22.2	12.7	65.3	47.8

^* Other intangible assets refer to the values allocated to intangible non-current assets, such as customer relations, technology and trademarks, in connection with the acquisition of Racal Acoustics.

Note 4 / Tax

Deferred tax assets referring to tax loss carryforwards are recognized to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilized. An individual assessment is made of each subsidiary with reference to historical performance and possibilities of utilizing the tax loss carryforwards.

The group's total tax loss carryforwards as at December 31, 2023, were SEK 164.7 million (150.2), of which none are capitalized. Unutilized tax loss carryforwards refer mainly to the parent company and cannot be capitalized at present. All tax loss carryforwards have an unlimited life.

SEK million	Dec 31, 2023	Dec 31, 2022
Deferred tax assets
Tax asset attributable to other temporary differences	2.6	3.6
Closing balance	2.6	3.6
Deferred tax liabilities
Tax liability attributable to capitalized development costs in Denmark	–21.2	–20.8
Tax liability attributable to temporary differences in other intangible assets	–16.9	–14.1
Tax asset attributable to other temporary differences in Denmark	0.5	0.4
Closing balance	–37.6	–34.6

Financial key figures, alternative performance measures and other definitions

INVISIO's financial statements include financial key figures that are specified in current financial reporting rules, alternative performance measures in accordance with ESMA's definition and other key figures related to the business. The alternative performance measures are regarded as relevant for an investor who wants to understand the company's results and financial position better. Definitions and reconciliation of the alternative performance measures that are not directly reconcilable with the financial statements can be found below. Reconciliation is against the closest comparable IFRS financial measure.

Gross margin

Gross profit as a percentage of total income.

Operating margin

Operating profit as a percentage of total revenue.

Profit margin

Profit for the year as a percentage of total revenue.

EBITDA

Operating profit before depreciation and impairment losses.

EBIT (operating profit)

Operating profit after depreciation and impairment losses. INVISIO defines EBIT (earnings before interest and tax) as operating profit.

Operating expenses

Selling and marketing costs, administrative expenses and development costs.

Net financial items

Financial income less financial expenses.

Equity/assets ratio

Equity divided by total assets (balance sheet total).

Number of shares

Number of shares outstanding at the close of the period.

Number of shares after dilution

Number of shares outstanding at the close of the period plus the number of shares that would be added if all potential dilutive shares were converted to shares.

Only the option programs whose issue price is lower than the average market price of the shares during the period can lead to a dilutive effect.

Average number of shares outstanding

Weighted average of the number of shares outstanding during the period.

Average number of outstanding shares after dilution

Weighted average of the number of shares outstanding during the period plus a weighted number of shares that would be added if all dilutive potential shares were converted to shares. Only the options programs whose issue price is less than the average market price of the shares during the period can lead to a dilutive effect.

Earnings per share

Profit for the year divided by the average number of shares outstanding.

Earnings per share after dilution

Profit for the year in relation to the number of shares outstanding after dilution.

Equity per share

Equity divided by the number of shares outstanding adjusted for non-registered issues.

Shareholders' equity per share after dilution

Shareholders' equity divided by the number of shares outstanding after dilution.

Number of employees at close of period

The number of employees on the date of the last payroll payment for the period.

Reconciliation of alternative performance measures

		Q4		Full year
SEK million		2023	2022	2023	2022
Gross profit	A	198.5	166.0	747.3	449.7
Operating expenses	B	136.2	106.2	504.5	384.5
EBIT (operating profit)	A–B	62.4	59.8	242.9	65.2

		Q4		Full year
SEK million		2023	2022	2023	2022
EBIT (operating profit)	A	62.4	59.8	242.9	65.2
Depreciation/amortization and impairment, intangible assets and property, plant and
equipment	B	22.2	12.7	65.3	47.8
EBITDA	A+B	84.6	72.5	308.2	113.0

SEK million		Dec 31, 2023	Dec 31, 2022
Shareholders' equity	A	720.4	510.0
Number of shares, thousands	B	45,590	45,049
Equity per share, SEK	A/B	15.80	11.32

SEK million		Dec 31, 2023	Dec 31, 2022
Shareholders' equity	A	720.4	510.0
Number of shares after dilution, thousands	B	46,237	45,049
Equity per share after dilution, SEK	A/B	15.58	11.32

Overview – last nine quarters

	2021	2022				2023
SEK million	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Revenue	152.2	137.4	153.7	195.1	289.2	311.3	269.8	311.6	345.8
Cost of goods sold	–66.4	–55.4	–65.3	–81.8	–123.2	–116.8	–106.5	–120.7	–147.2
Gross profit	85.8	82.1	88.4	113.3	166.0	194.6	163.3	190.9	198.5
Operating expenses	–84.5	–85.9	–96.7	–95.8	–106.2	–110.7	–117.9	–139.7	–136.2
Operating profit	1.3	–3.8	–8.3	17.5	59.8	83.9	45.4	51.2	62.4
Net financial items	0.8	–0.2	0.3	1.5	–4.3	–0.2	–7.9	3.3	3.8
Profit/loss before tax	2.1	–4.0	–8.0	19.0	55.5	83.6	37.6	54.6	66.1
Income tax on profit for the period	–0.9	–0.3	0.6	–5.6	–12.8	–23.6	–10.3	–14.4	–15.2
Profit/loss for the period	1.3	–4.3	–7.3	13.5	42.7	60.0	27.3	40.2	50.9
Cash flow from operating activities	23.1	3.3	8.1	4.1	26.1	80.2	85.9	1.8	36.8
Order intake	160.0	396.8	157.7	291.0	296.4	315.2	402.0	258.4	298.0
Order book	224.7	481.7	481.7	615.5	624.7	626.7	790.3	717.5	602.8
Gross margin. %	56.4	59.7	57.5	58.1	57.4	62.5	60.5	61.3	57.4
Operating margin. %	0.9	–2.8	–5.4	9.0	20.7	26.9	16.8	16.4	18.0
Profit margin. %	0.8	–3.1	–4.8	6.9	14.8	19.3	10.1	12.9	14.7
Equity/assets ratio. %	61	63	63	61	64	65	71	66	68
Earnings per share for the period. SEK*	0.03	–0.10	–0.16	0.30	0.95	1.33	0.60	0.88	1.12
Equity per share. SEK*	9.37	9.38	9.61	10.24	11.32	12.86	14.74	15.27	15.80

^*Before dilution

Invitation to conference call on February 13 at 15:00

INVISIO invites the media, investors and analysts to a conference call on Tuesday February 13 at 15:00 at which CEO Lars Højgård Hansen will present INVISIO's year-end bulletin for 2023. The call will be held in English, starting with a brief presentation followed by a question-and-answer session.

Links to the recording and presentation will be published on INVISIO's website about one hour after the call.

Registration

Preregistration is required in order to participate and submit questions at the call. After registration, a phone number and conference ID will be provided. Please complete your registration five to ten minutes prior to the scheduled starting time to facilitate a timely start.

Registration link

https://service.flikmedia.se/teleconference/?id=100394

Audiocast

To follow the presentation online, please use this link: https://invisio.videosync.fi/2024-02-13-q42023

Financial calendar

Interim report January–March 2024 May 7, 2024 Annual general meeting 2024 May 7, 2024 at 16:00 Half-year report January–June 2024 July 19, 2024 Interim report January–September 2024 October 24, 2024

Interim reports and annual reports are available at www.invisio.com.

Public disclosure

This information is information that INVISIO AB (publ) is obliged to disclose under the EU Market Abuse Regulation. The information was released for public disclosure, through the agency of the President/CEO, on February 13, 2024, at 14:00 CET.

For further information, please contact

Lars Højgård Hansen, CEO +45 5372 7722 | lhh@invisio.com

Thomas Larsson, CFO +45 5372 7735 | thl@invisio.com

Michael Peterson, Director Investor Relations and Corporate Communications +45 5372 7733 | mpn@invisio.com

Postal address

INVISIO AB | PO Box 151 | SE 201 21 Malmö

INVISIO AB is a Swedish limited company listed on Nasdaq Stockholm. The company's share is traded under the ticker name IVSO and the ISIN code is SE0001200015.

You can find INVISIO at www.invisio.com