Biotage

Quarterly Report • Oct 23, 2024

Biotage AB (publ)

Interim Report January - September 2024

Good Q3 execution delivering strong organic growth

July – September

• » Net sales amounted to SEK 490 (449) million, an increase of 9.1 percent and an organic* increase of 12.4 percent.
• » EBITDA amounted to SEK 111 (110) million and the EBITDA margin amounted to 22.6 percent (24.5).
• » Adjusted EBITDA amounted to SEK 124 (117) million and adjusted EBITDA margin amounted to 25.3 percent (26.1).
• » Operating profit amounted to SEK 65 (65) million and the operating margin was 13.2 percent (14.6).
• » Profit after tax amounted to SEK 45 (38) million.
• » Earnings per share were SEK 0.55 (0.48) before and after dilution.
• » Cash flow from operating activities increased to SEK 109 (103) million.
• » Adjusted cash flow from operating activities* increased to SEK 153 (130) million.
• » Net cash as of September 30 was SEK 120 million, SEK 335 million as of December 31, 2023, after payment of earn-outs and dividends.
• » Frederic Vanderhaegen was appointed CEO on the 16th September succeeding Torben Jørgensen, who will now continue as a board member.

January – September

• » Net sales amounted to SEK 1,474 (1,219) million, an increase of 21.0 percent and an organic* increase of 7.2 percent.
• » EBITDA amounted to SEK 345 (275) million and the EBITDA margin amounted to 23.4 percent (22.5).
• » Adjusted EBITDA amounted to SEK 380 (324) million and adjusted EBITDA margin amounted to 25.8 percent (26.6).
• » Operating profit amounted to SEK 208 (172) million and the operating margin was 14.1 percent (14.1).
• » Profit after tax amounted to SEK 126 (115) million.
• » Earnings per share were SEK 1.56 (1.60) before and after dilution.
• » Cash flow from operating activities increased to SEK 252 (130) million.
• » Adjusted cash flow from operating activities* increased to SEK 399 (247) million.
• » On January 4, it was announced that Tomas Blomqvist left his position as CEO and Torben Jørgensen had assumed the role of CEO until a new CEO has been recruited. Kieran Murphy was appointed Chairman of the Board.
• » On February 15, the Board decided on new financial targets. The organic revenue goal is focused on double digit growth percent with a profitability aimed toward the upper twenty percent range (Adjusted EBITDA), both averaging over three years.
• » On February 15, Andrew Kellett was appointed as permanent CFO after having an interim position since September 11, 2023.

^* See definitions on pages 17-19

Financial overview

	Quart	Quarter		Nine month period
Amounts in SEK millions	7/1/2024 9/30/2024	7/1/2023 9/30/2023	1/1/2024 9/30/2024	1/1/2023 9/30/2023	1/1/2023 12/31/2023
Netsales	490	449	1,474	1,219	1,862
Change. %	9.1%	12.1%	21.0%	3.2%	18.9%
of which:
- Organic growth. %	12.4%	-9.5%	7.2%	-12.1%	-10.2%
- Currency effects. %	-3.3%	3.4%	-1.4%	5.0%	4.0%
- Acquisitions/divestments. %	-	18.2%	15.2%	10.3%	25.1%
EBITDA	111	110	345	275	463
EBITDA margin. %	22.6%	24.5%	23.4%	22.5%	24.9%
Adjusted EBITDA	124	117	380	324	518
Adjusted EBITDA margin, %	25.3%	26.1%	25.8%	26.6%	27.8%
Gross profit	303	282	930	756	1,149
Gross margin. %	61.7%	62.9%	63.0%	62.0%	61.7%
Operating profit (EBIT)	65	65	208	172	314
Operating margin (EBIT). %	13.2%	14.6%	14.1%	14.1%	16.9%
Profit for the period	45	38	126	115	246
Earnings per share. SEK (before and after dilution)	0.55	0.48	1.56	1.60	3.33
Cashflow from operating activities	109	103	252	130	284
Adj. cash flow from operating activities	153	130	399	247	435

Net sales, SEK millions

Adjusted EBITDA, SEK millions

Distribution of net sales

Message from the CEO

Good Q3 execution delivering strong organic growth

In the third quarter we continued to deliver strong organic growth of 12%. Our well-balanced product portfolio and solution focus gives us a highly competitive position to win in the markets we serve.

I want to start this briefing by expressing my gratitude to Torben Jørgensen for his leadership during the transition period and the solid results that were delivered.

My management mantra is to be at the point of impact of our business. Therefore, since joining, just over a month ago, I have been meeting our teams worldwide to listen and learn first-hand as well as visiting our customers to get their important perspectives. I have been impressed with what I have heard and seen and am excited about the opportunities ahead of us to build scale and accelerate growth through the further sharpening of our strategy and a relentless focus on operational excellence.

In the quarter we reported positive organic growth of 12%. Geographically, our largest and most important markets, the Americas and EMEA continued to show good momentum and growth. In APAC and in particular China, we are still seeing challenging headwinds. We have taken actions to adjust the cost base in China to better align the operational infrastructure with current market conditions.

In the quarter we delivered revenues of 490 MSEK, up 9%. For the first 9 months of the year, we delivered revenues of 1,474 MSEK, up 21% with recurring revenues at 72% in the quarter and year to date.

Organic growth in Drug Discovery and Development, which represents approximately two thirds of our business, was 16% ahead in the quarter and 4% ahead for the first 9 months of the year. Although Small Molecules saw negative growth in the quarter, the decline narrowed considerably from the previous quarter. We are working at pace with our supply partner to resolve previously reported production capacity constraints for our peptide systems. While we are gradually seeing a

sequential quarter-on-quarter increase in production capacity, there is still work to be done to match the supply with the current level of demand, and this in turn is impacting our reported growth.

In Large Molecules, we saw continued attractive organic growth of 65% in the quarter and 60% in the first 9 months.

In Analytical and Diagnostic Testing, which represents approximately one third of our business, organic growth in the quarter was 5% and 14% for the first 9 months of the year, which is very pleasing to report.

Our gross margins at 63% year to date are robust and ahead of last year. In the quarter, which is traditionally quieter, we did see some transitory changes in product and customer mix. Importantly, we continued to control our operating costs to deliver attractive adjusted EBITDA.

In the quarter and year to date we continued invest in our operational facilities to increase manufacturing capacity to enable future growth. In the Isle of Man, additional capacity will come on stream in the fourth quarter. In Boston, US, our new facility has cleanrooms so we can more fully exploit the column packing market, as well as warehousing for rapid delivery of products to our customers.

Additionally, our continued investment in research and development underpins our steady stream of product launches and cements our reputation for thought and innovation leadership in the markets we operate in. Our recent launches of PeptiPec-96 for peptide purification and the Selekt ELSD that detects compounds that lack chromophores are two examples of Biotage bringing to market workflow solutions addressing customers problems.

Biotage is now able to capture opportunities across multiple modalities.

Our Drug Discovery & Development - Small Molecules and Analytical and Diagnostic Testing businesses deliver predictable revenue streams, industry leading gross margins, and solid adjusted EBITDA and cash generation.

Our Drug Discovery & Development - Large Molecules business gives us access to the higher growth bioprocessing market and the ability to generate superior revenue growth and attractive margins. Coupled with our expansive modality offering, an enviable broad suite of innovative 'must have' solutions and balanced geographical profile, give us an attractive competitive offering.

Biotage is fortunate to have a highly skilled, creative and enthusiastic workforce. Their energy, commitment and can-do attitude continues to make Biotage the successful company it is today, and it gives me confidence, in this my first report, that as we look to the future, we can continue to deliver attractive growth, benefiting all our stakeholders.

Uppsala, October 23, 2024

Frederic Vanderhaegen

CEO and President

Sales, earnings, cash flow and financial position

Net sales and earnings

Net sales for the quarter amounted to SEK 490 (449) million, an increase of 9.1 percent and an organic increase of 12.4 percent. The Americas accounted for 44 (41) percent of revenues and EMEA 42 (40) percent. APAC accounted for 14 (19) percent. Sales were distributed as follows: recurring revenue (consumables and service) 72 (65) percent and non-recurring (system) sales 28 (35) percent.

Net sales for the nine-month period amounted to SEK 1,474 (1,219) million, an increase of 21.0 percent and an organic increase of 7.2 percent.

The Group's gross margin for the quarter decreased by 1.2 percentage points to 61.7 percent (62.9). The gross margin reduced principally due to transitory changes in customer and product mix. The gross margin for the nine-month period increased by 1.0 percentage point to 63.0 (62.0) percent.

Operating expenses for the quarter amounted to SEK -238 million (-217), an increase of SEK 21 million. Selling expenses increased by SEK 1 million to SEK -126 million (-125), administration expenses increased by SEK 23 million to SEK -68 million (-45) and research and development expenses decreased by SEK 3 million to SEK -41 million (-44). The increased administrative cost levels compared to the previous year are explained by continued investment in the Astrea business to support ongoing growth plans and costs connected to the CEO transition. Other operating items for the quarter amount to SEK -3 (-3) million mainly consisting of currency effects on operating liabilities and receivables.

Operating expenses for the nine-month period amounted to SEK -722 (-584) million, an increase of SEK 138 million. This increase is primarily due to Astrea being part of the group for only four months of the comparative period. Distribution costs increased by SEK 79 million to SEK -403 (-324) million. Administrative expenses increased by SEK 44 million to SEK -192 (-148) million. Research and development expenses increased by SEK 20 million to SEK -129 (-109) million. Other operating items for the nine-month period were SEK 2 (-3) million and consist primarily of currency effects on operating liabilities and receivables.

Operating profit for the quarter remains steady at SEK 65 (65) million and the operating margin (EBIT) decreased by 1.4 percentage points to 13.2 (14.6) percent. Operating profit for the nine-month period increased to SEK 208 (172) million and the operating margin (EBIT) amounted to 14.1 (14.1) percent.

EBITDA for the quarter amounted to SEK 111 (110) million. Adjusted EBITDA amounted to SEK 124 (117) million. For the nine-month period, the corresponding values were SEK 345 (275) million and SEK 380 (324) million, respectively. The adjusted EBITDA margin for the quarter decreased to 25.3 (26.1) percent and for the nine-month period to 25.8 (26.6) percent. See also Note 2.

Net financial items for the quarter amounted to SEK -4 (-19) million. The nine-month financial net was SEK -38 (-26) million, mainly driven by financial costs attributable to the unwinding of discounting on additional consideration liabilities and negative exchange rate differences. The financial net previous year was positively impacted by the revaluation of additional consideration to the sellers of PhyNexus Inc

Recognized tax expense increased to SEK -16 (-8) million. Profit after tax for the quarter increased by SEK 7 million to SEK 45 (38) million. Profit after tax for the nine-month period increased to SEK 126 (115) million. Recognized tax expense for the nine-month period increased to SEK -44 (-31) million.

Cash flow

Cash flow from operating activities for the quarter increased by SEK 6 million (5.8 percent) to SEK 109 (103) million. Adjusted cash flow from operating activities increased to SEK 153 (130) million. Cash flow from operating activities for the nine-month period increased by SEK 122 million to SEK 252 (130) million and adjusted cash flow from operating activities increased to SEK 399 (247) million

Cash outflows related to investments for the quarter amounted to SEK -48 (-25) million. For the nine-month period cash flow from investment amounted to SEK -352 (inflows of SEK 62) million, affected by earn-out payments to the previous

shareholders of Astrea and Phynexus Inc. Prior year was positively affected by acquired cash from Astrea.

Investments in property, plant and equipment amounted to SEK 28 (8) million for the quarter, and for the nine-month period to SEK 69 (17) million, where a large proportion is attributable to the construction of additional production facilities in the Isle of Man. Investments in intangible assets were SEK 20 (15) million for the quarter and SEK 63 (43) million for the nine-month period. Capitalized development expenses accounted for SEK 18 (10) million of the investments in intangible assets during the quarter and SEK 7 (7) million of amortization. The corresponding amount for the nine-month period was SEK 56 (36) million for investments and SEK 20 (20) million for amortization.

Total depreciation and amortization for the quarter was SEK 46 (49) million, with SEK 8 (9) million directly attributable to property, plant, and equipment; SEK 8 (8) million to amortization on right-of-use assets and SEK 30 (32) million to intangible assets. Total depreciations and amortizations for the nine-month period amounted to SEK 137 (105) million, with SEK 24 (18) million directly attributable to property, plant and equipment, SEK 23 (20) million to right-of-use assets. Amortization of intangible fixed assets amounted to SEK 90 million (67).

Balance sheet items

The Group's cash & cash equivalents on September 30 were SEK 370 (594) million. Interest-bearing liabilities relate to borrowings of SEK 150 (150) million under a credit facility, lease liabilities total SEK 100 (109) million and there is an estimated additional consideration of SEK 0 (5) million due for the acquisition of PhyNexus, Inc. and SEK 184 (363) million due to the acquisition of Astrea. The net cash position was SEK 120 (335) million, see note 2. KKR earn-out (SEK 215 million) and dividend (SEK 128 million) were paid during the nine-month period.

The Group's total goodwill on September 30 amounted to SEK 2,493 (2,391) million. The change is wholly attributable to exchange rate differences.

Capitalized development costs amounted to SEK 206 (169) million. Other intangible assets, mainly acquired in business combinations, amounted to SEK 562 (586) million.

Equity amounted to SEK 3,810 (3,657) million on September 30. The change is attributable to the comprehensive income of SEK 126 million, currency effects of SEK 153 million on the translation of foreign subsidiaries, dividends to shareholders of the parent of SEK -128 million, share-based compensation of SEK -1 million and other movements of SEK 3 million.

Human resources

The Group had 675 employees (full-time equivalents) on September 30, compared with 689 one year earlier, and 674 on December 31, 2023.

Parent company

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

The Parent Company's net sales for the quarter amounted to SEK 2 (1) million. The operating expenses were SEK -16 (-9) million. The operating loss was SEK -14 (-8) million. The nine-month revenue was SEK 7 (3) million and operating loss was SEK -34 (-20) million.

The Parent Company's net financial items for the quarter amounted to SEK -4 (-12). The nine-month net financial items were SEK 228 (-26) million and consisted primarily of dividends from subsidiaries partly offset by exchange losses and financial expenses related to additional consideration.

Recognized tax for the quarter amounted to SEK -8 (2) million and SEK -1 (6) million for the nine-month period and was impacted by a tax adjustment attributable to the previous period. Profit after tax amounted to SEK -26 (-18) million for the quarter and SEK 193 (-40) million for the nine-month period.

Investments in intangible assets amounted to SEK 0 (0) million for the quarter and SEK 1 (1) million for the nine-month period.

Cash and bank balances on September 30 were SEK 71 (194) million.

Significant events during the reporting period

Frederic Vanderhaegen was appointed CEO on the 16th September succeeding Torben Jørgensen, who will now continue as a board member.

Significant events after the end of the reporting period

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

Risks and uncertainties

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

No significant change in material risks and uncertainties has taken place during the period compared to the section on Biotage's risks, uncertainties and risk management in the Company's 2023 annual report.

Related-party transactions

There were no significant transactions during the period other than transactions between subsidiaries and remuneration of senior executives of the Group and

Parent Company. The amounts are essentially the same as in the most recent annual report.

Forward-looking information

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

Audit review

This report has been reviewed by the Company's auditors.

Biotage's financial targets

• » Average annual double digit organic revenue growth (%) over a three-year period. Outcome: 2.7% on September 30, 2024.
• » Average annual profitability upper 20% range over a three-year period. Outcome: 27.8% on September 30, 2024.

General information

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

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

Calendar

All financial reports are published on www.biotage.com

Year-end Report 2024	February 19, 2025
Annual Report 2024 is planned to be published	April 3, 2025
Interim Report January-March 2025	April 24, 2025
Annual General Meeting	April 24, 2025
Interim Report January-June 2025	July 16, 2025
Interim Report January-September 2025	October 23, 2025

The interim report for Biotage AB (publ) has been issued by the Company´s President and CEO Frederic Vanderhaegen after authorization by the Board of Directors.

Uppsala, October 23, 2024

Frederic Vanderhaegen

CEO and President

For further information

Frederic Vanderhaegen, CEO and President

Andrew Kellett, CFO

e: IR@biotage.com

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

The information was submitted for publication, through the agency of the contact persons set out above, on October 23, 2024, at 08.00 CET.

Consolidated financial statements

Consolidated statement of comprehensive income

SEK Millions	7/1/2024 9/30/2024	7/1/2023 9/30/2023	1/1/2024 9/30/2024	1/1/2023 9/30/2023	1/1/2023 12/31/2023
Net sales	490	449	1,474	1,219	1,862
Cost of sales	-187	-167	-544	-463	-713
Gross profit	303	282	930	756	1,149
Distribution costs	-126	-125	-403	-324	-457
Administrative expenses	-68	-45	-192	-148	-212
Research & development expenses	-41	-44	-129	-109	-159
Other operating items	-3	-3	2	-3	-7
Total operating expenses	-238	-217	-722	-584	-835
Operating profit	65	65	208	172	314
Net financial items	-4	-19	-38	-26	-11
Profit before tax	61	46	170	146	303
Income tax	-16	-8	-44	-31	-57
Profit for the period	45	38	126	115	246
Items that may be reclassified to profit or loss for the year: Exchange differences from translation of
foreign subsidiaries	-29	-102	153	10	-155
Total other comprehensive income	-29	-102	153	10	-155
Total comprehensive income for the period	16	-64	279	125	91
Profit for the period attributable to owners of the Parent	45	38	126	115	246
Total comprehensive income for the period attributable to owners of the Parent	16	-64	279	125	91
Average number of shares outstanding	80,049,272	79,984,749	80,021,881	71,801,105	73,852,875
Average number of shares outstanding after dilution due to outstanding share programs	80,114,114	80,118,286	80,075,894	71,963,754	73,994,435
Ordinary shares outstanding at the reporting date	80,049,272	80,008,185	80,049,272	80,008,185	80,008,185
Earnings per share for the period	0.55	0.48	1.56	1.60	3.34

Consolidated statement of financial position

Amounts in SEK millions	9/30/2024	12/31/2023
ASSETS
Non-current assets
Goodwill	2,493	2,391
Capitalized development expenditure	206	169
Other intangible assets	562	586
Right-of-use assets	83	97
Property, plant and equipment	230	187
Financial assets	25	23
Deferred tax asset	28	31
Total non-current assets	3,627	3,484
Current assets
Inventories	490	437
Trade receivables	310	321
Other receivables	68	95
Cash and cash equivalents	370	594
Total current assets	1,238	1,447
TOTAL ASSETS	4,865	4,931

Amounts in SEK millions	9/30/2024	12/31/2023
EQUITY AND LIABILITIES
Capital and reserves attributable to equity holders of the parent company
Share capital	113	112
Reserves and other contributed capital	2,320	2,167
Retained earnings	1,377	1,378
Total equity	3,810	3,657
Non-current liabilities
Liabilities to credit institutions	150	150
Lease liabilities	67	76
Other interest-bearing liabilities	-	147
Deferred tax liability	187	193
Non-current provisions	3	3
Total non-current liabilities	407	569
Current liabilities
Accounts payables	69	98
Lease liabilities	33	33
Other financial liabilities	184	221
Other liabilities	359	349
Current provisions	3	4
Total current liabilities	648	705
TOTAL EQUITY AND LIABILITIES	4,865	4,931

Condensed consolidated statement of changes in equity

Amounts in SEK millions	Share capital	Other paid-in capital Translation reserve Retained earnings			Total equity
OPENING BALANCE JANUARY 1, 2023	93	281	34	1,229	1 ,637
Changes in equity between January 1 and December 31, 2023
Total comprehensive income for the period	-	-	-155	246	91
Total changes during the period, excluding transactions with owners of the Parent	-	-	-155	246	91
Transactions with owners of the Parent
New share issue	19	2,007	-	-	2,026
Dividend to shareholders of the Parent	-	-	-	-106	-106
Share-based compensation	-	3	-	-	3
Other changes	-	-	-3	5	2
Sales of own shares in the Parent company	-	-	-	3	3
Closing balance December 31, 2023	112	2,291	-124	1,378	3,657
CHANGES IN EQUITY BETWEEN JANUARY 1 AND SEPTEMBER 30, 2024
Total comprehensive income for the period	-	-	153	126	279
Total changes during the period excluding transactions with owners of the Parent	-	-	153	126	279
Transactions with owners of the Parent
New share issue	1	-	-	-	1
Dividend to shareholders of the Parent	-	-	-	-128	-128
Share-based compensation	-	-1	-	-	-1
Sale of own shares in parent company	-	-	-	1	1
Other changes	-	-	1	-	1
Closing balance September 30, 2024	113	2,290	30	1,377	3,810

Condensed consolidated statement of cash flows

Amounts in SEK millions	7/1/2024 9/30/2024	7/1/2023 9/30/2023	1/1/2024 9/30/2024	1/1/2023 9/30/2023	1/1/2023 12/31/2023
OPERATING ACTIVITIES
Profit before tax	61	46	170	146	303
Adjustments for non-cash items	48	78	163	128	163
Cash flow from operating activities before changes in working capital and income tax paid	109	124	333	274	466
Income tax paid	-31	-20	-112	-68	-96
Cash flow from operating activities before changes in working capital	78	104	221	206	370
CASH FLOW FROM CHANGES IN WORKING CAPITAL
Increase (-)/decrease (+) in inventories	-21	-72	-39	-69	-20
Increase (-)/decrease (+) in operating receivables	27	34	45	-35	-97
Increase(+)/decrease (-) in operating liabilities	25	37	25	28	31
Cash flow from changes in working capital	31	-1	31	-76	-86
CASH FLOW FROM OPERATING ACTIVITIES	109	103	252	130	284
INVESTING ACTIVITIES
Acquisition of intangible assets	-20	-15	-63	-43	-65
Acquisition of property, plant and equipment	-28	-8	-69	-17	-26
Acquisition/disposal of financial assets	-	-2	-	-3	1
Acquisition of subsidiaries, net of cash	-	-	-220	125	125
Cash flow from investing activities	-48	-25	-352	62	35
FINANCING ACTIVITIES
Dividend to shareholders	-	-	-128	-106	-106
Sale of own shares	1	-	1	-	2
Repayment of borrowings	-5	-13	-19	-28	-38
Cash flow from financing activities	-4	-13	-146	-134	-142
Cash flow for the reporting period	57	65	-246	58	177
Cash and cash equivalents at beginning of period	318	444	594	441	441
Exchange differences	-5	-8	22	2	-24
Cash and cash equivalents at end of reporting period	370	501	370	501	594
Adjustments for non-cash items
Depreciation and impairment	46	49	137	105	149
Translation differences	-4	2	5	6	-18
Value adjustment, additional consideration	-	-	-	-6	-9
Other items	6	27	21	23	41
Total	48	78	163	128	163

Condensed income statement, Parent Company

Amounts in SEK millions	7/1/2024 9/30/2024	7/1/2023 9/30/2023	1/1/2024 9/30/2024	1/1/2023 9/30/2023	1/1/2023 12/31/2023
Net sales	2	1	7	3	5
Administrative expenses	-15	-8	-38	-20	-27
Research & development expenses	-1	-1	-3	-3	-4
Other operating items	-	-	-	-	-1
Operating expenses, net	-16	-9	-41	-23	-32
Operating profit	-14	-8	-34	-20	-27
Net financial items	-4	-12	228	-26	34
Profit/loss after financial items	-18	-20	194	-46	7
Appropriations	-	-	-	-	1
Income tax	-8	2	-1	6	-7
Profit/loss for the reporting period	-26	-18	193	-40	1
STATEMENT OF COMPREHENSIVE INCOME, PARENT COMPANY
Profit/loss for the reporting period	-26	-18	193	-40	1
Other comprehensive income
Items that may be reclassified to profit or loss for the year	-	-	-	-	-
Comprehensive income for the reporting period	-26	-18	193	-40	1

Balance sheet, Parent Company

Amounts in SEK millions	9/30/2024	12/31/2023
ASSETS
Non-current assets
Intangible assets
Patents and licenses	14	13
Total intangible assets	14	13
Financial assets
Investments in Group companies	3,545	3,545
Receivables from Group companies	8	8
Other financial assets	15	15
Total financial assets	3,568	3,568
Total non-current assets	3,582	3,581
Current assets
Current receivables
Receivables from Group companies	4	5
Other receivables	12	1
Prepaid expenses and accrued income	1	2
Total current receivables	17	8
Cash and bank balances	71	194
Total current assets	88	202
Total assets	3,670	3,783

Amounts in SEK millions	9/30/2024	12/31/2023
EQUITY, PROVISIONS AND LIABILITIES
Equity
Restricted equity
Share capital	113	112
Total restricted equity	113	112
Unrestricted equity
Other paid-in capital	2,264	2,264
Retained earnings	510	637
Profit/loss for the reporting period	193	1
Total unrestricted equity	2,967	2,902
Total equity	3,080	3,014
Untaxed reserves	1	1
Non-current liabilities
Liabilities to credit institutions	150	150
Other non-current liabilities	-	131
Total non-current liabilities	150	281
Current liabilities
Trade payables	-	3
Liabilities to Group companies	198	213
Current tax liabilities	5	-
Other financial liabilities	212	259
Other non-current liabilities	-	-
Accruals and deferred income	24	12
Total current liabilitites	439	487
Total equity and liabilities	3,670	3,783

Key figures and ratios

		2024			2023			2022
Amounts in SEK millions	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Net Sales	490	504	480	643	449	409	361	384	401
Growth in net sales, %	9.1%	23.4%	33.0%	67.3%	12.1%	3.4%	-6.4%	12.6%	31.2%
Organic growth, %	12.4%	9.3%	-1.4%	-4.4%	-9.5%	-14.0%	-12.8%	-0.8%	12.2%
Gross profit	303	324	303	393	282	254	220	227	241
Gross margin, %	61.7%	64.2%	63.1%	61.1%	62.9%	62.0%	60.9%	59.1%	60.1%
Adjusted EBITDA	124	131	125	194	117	109	98	89	128
Adjusted EBITDA margin, %	25.3%	25.9%	26.2%	30.2%	26.1%	26.7%	27.2%	23.1%	31.8%
Operating profit	65	77	67	143	65	53	54	41	97
Operating margin, %	13.2%	15.2%	13.9%	22.2%	14.6%	12.9%	14.8%	10.8%	24.2%
Profit for the period	45	48	33	131	38	34	43	74	65
Profit margin, %	9.2%	9.5%	6.9%	20.4%	8.5%	8.3%	11.9%	19.2%	16.2%
Total Assets	4,865	4,844	5,147	4,931	5,001	5,002	2,362	2,339	2,306
Net cash(+)/net debt(-), SEK millions	120	64	426	335	250	226	207	224	191
Equity/Assets ratio, %	78.3%	78.2%	75.6%	74.2%	73.8%	74.9%	71.5%	70.0%	69.3%
Cash flow from operating activities, SEK/share	1.36	0.43	1.35	1.92	1.29	0.28	0.16	1.49	1.47
Average number of employees	675	667	669	674	689	674	516	517	510
Return on equity, %	5.7%	6.7%	8.5%	9.3%	7.1%	8.2%	15.2%	17.8%	17.8%
Return on capital employed, %	9.4%	9.4%	11.6%	11.9%	8.9%	10.1%	18.3%	21.1%	25.2%
Return on total assets, %	7.6%	7.6%	9.4%	9.5%	7.0%	8.0%	14.7%	16.7%	19.5%
Earnings, SEK/share	0.55	0.60	0.42	1.64	0.48	0.49	0.65	1.12	0.99
Earnings after dilution, SEK/share	0.55	0.60	0.42	1.64	0.48	0.49	0.65	1.11	0.98
Stock market price at end of period, SEK/share	186.7	163.1	181.9	133.7	107.4	134.2	132.2	185.5	166.8
Equity, SEK/share	47.60	47.36	48.61	45.70	46.12	46.85	25.58	24.81	24.23
Equity after dilution, SEK/share	47.56	47.33	48.57	45.65	46.06	53.81	25.51	24.73	24.16
Weighted average number of shares, thousands	80,049	80,008	80,008	80,008	79,985	69,435	65,984	65,984	65,984
Weighted average number of shares after dilution, thousands	80,114	80,049	80,064	80,086	80,118	69,592	66,181	66,200	66,195
Total number of shares outstanding at end of the period, thousands	80,049	80,008	80,008	80,008	80,008	79,938	65,984	65,984	65,984

See definitions in Note 2 and in the 2023 Annual Report, pp 100-102

Notes

Note 1 Accounting policies

Biotage's consolidated financial statements are based on International Financial Reporting Standards as adopted by the EU. The interim report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities. The Group and the Parent Company have applied the same accounting policies and calculation methods in the interim report as in the most recent annual report. Disclosures in accordance with IAS 34 Interim Financial Reporting are provided in the notes and elsewhere in the interim report. Amended and new standards and interpretations from the IASB and IFRS Interpretations Committee that are effective for the 2024 fiscal year have not had any impact on the Group's financial reporting. Amendments to RFR2 that have come into force and are effective on or after January 1, 2024, have not had any material impact on the Parent Company's financial statements.

When preparing the interim reports for the Group and Parent Company, the same accounting policies and calculation methods have been used as in Biotage's 2023 annual report. The accounting policies are described on pages 58-72 of the annual report. For balance sheet items, figures in parentheses refer to the value at the end of the previous fiscal year, December 31, 2023. For income statements and cash flow items, figures in parentheses refer to the corresponding period in the previous year.

Fair value

Additional consideration

Biotage´s financial liabilities relating to additional consideration in connection with business combinations are measured at fair value through profit or loss. At the beginning of June, the final settlement of the additional consideration attributable to the acquisition of PhyNexus, Inc, SEK 5 million, was made. As part of the agreement to acquire Astrea there is potential additional consideration based on the achievement of financial targets linked to the sales and gross profit performance in the years 2023 to 2025. The financial targets for 2023 were achieved and settlement of the first instalment of the debt was made in the second quarter. The second part is expected to be settled in the second quarter of 2025. The Group's total additional consideration also includes additional consideration related to Astrea's acquisition of Delta.

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

	9/30/2024	12/31/2023
Additional consideration, non-current portion	-	147
Additional consideration, current portion	184	221
Total	184	368

Opening value, January 1, 2024	368
Settled during the year	-220
Value adjustment	20
Exchange rate differences	16
Closing balance, September 30, 2024	184

Other financial assets

Biotage has a financial asset in the form of shares in Chreto ApS, reported as financial assets at fair value. The holding has been allocated to level 2 of the fair value hierarchy on the basis that issue prices during autumn 2023 are observable market data. As of 30 September 2024, the holding was valued at the last known transaction price, which is the issue price in 2023.

A fair value calculation based on discounted future cash flows, for which the most significant input is a discount rate that reflects the counterparty's credit risk, is not expected to differ significantly from the carrying amount of other financial assets and current financial liabilities measured at amortized cost. Consequently, the carrying amounts of these financial assets and liabilities are considered to represent a good approximation of fair values. Further information about financial assets and liabilities and their classification can be found in Note 20 and 21 of the 2023 Annual Report.

Performance share program

Biotage has established long-term incentive programs in the form of performance-based share programs for employees within the Biotage Group. The programs have been approved by the Annual General Meeting.

During the third quarter, the LTIP 2021 program was terminated, and ordinary shares were allotted to the participants. The LTIP 2022 program runs until May 2025 and includes the former CEO, members of the company's management team and other key employees. For further information regarding LTIP 2022, see the Annual Report 2023.

On 25 April 2024, the Annual General Meeting of Biotage adopted an incentive program, LTIP 2024, see terms and conditions below. In connection with this, a new share issue was carried out and thereafter repurchase of 286,440 Class C shares. The changes in the numbers of performance shares:

Number of performance

shares		LTIP 2021 LTIP 2022 LTIP 2024
Opening balance January 1, 2024	138,379	150,103	-
Allotted performance shares	-	-	215,000
Transferred performance shares	-34 598	-	-
Cancelled performance shares	-103 781	-45,659	-
Closing balance September 30, 2024	-	104,444	215,000

Terms and conditions LTIP 2024

The CEO, members of the management team and other key personnel within the Group, a maximum of 19 individuals, are entitled to receive ordinary shares in accordance with the terms and conditions below. Allotment of performance shares requires that the participant remains in his/her employment for three years from the allotment date. In addition to the requirement for the participant's continued employment, the final number of performance shares that each participant is entitled to receive is settled based on the following performance terms:

Performance term 1: 25 percent of the performance shares if the total return of the company's ordinary share amounts to or exceeds 33.3 percent in the period September 2024 – August 2027, however, at least 15.8 percent is required for the allotment to take place. Total return refers to return to shareholders in the form of price increase and reinvestment of any dividends during the vesting period.

Performance term 2: 25 percent of the performance shares if the average adjusted EBITDA amounts to or exceeds 29 percent in 2024-2026 (calendar years), however, at least 25 percent is required for allotment to take place.

Performance term 3: 25 percent of the performance shares if the average organic sales growth amounts to or exceeds 12 percent in 2024-2026 (calendar years), however, at least 5 per cent is required for allotment to take place.

Performance term 4: 25 percent of the performance shares if the reduction of Biotage´s CO2 footprint amounts to or exceeds 20 per cent in 2024-2026 (calendar years), however, at least 10 percent is required for allotment to take place.

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

The rights related to Performance term 1 are valued according to the Monte Carlo model with an expected volatility of 40.5 percent and an interest rate of 1.78 percent. This results in an assigned value of SEK 93.15. The rights relating to Performance terms 2 -4 are valued on the basis of the current share price minus forecasted dividends during the vesting period. This results in an assigned value of SEK 181.70.

Scope and costs of the LTIP programs

The programs are reported in accordance with IFRS 2, which means that the rights are measured on the grant date at the fair value of allotted equity instruments.

13 participants, including the former CEO, have been allotted a total of 168,926 rights to performance shares in accordance with LTIP 2022. 17 participants, including the CEO, have been allotted a total of 215,000 rights to performance shares in accordance with LTIP 2024.

LTIP 2022 impacted the quarter with costs of SEK 0.1 million including social security costs. The estimated total cost for LTIP 2022 is estimated to amount to SEK 5 million. For LTIP 2024, the corresponding amounts are SEK 0.6 million and SEK 22 million, respectively.

Effects on key figures and dilution

In order to secure the allotment of ordinary shares in Biotage for participants in the incentive programs, Biotage has issued Class C shares and repurchased them. Further information about the terms and conditions of the Class C shares can be found in the appendix of the minutes of the respective AGM on the Biotage website.

At maximum allotment under LTIP 2022, 104,444 ordinary shares will be allotted to the participants, and 47,130 ordinary shares will be used to cover any social security contributions resulting from LTIP 2022, which entails a dilution effect of approximately 0.20 percent of the number of ordinary shares in the company. At maximum allotment under LTIP 2024, 231,000 ordinary shares will be allotted to the participants, and 55,440 ordinary shares will be used to cover any social security contributions resulting from LTIP 2024, which means a dilution effect of approximately 0.35 percent of the number of ordinary shares in the company.

The average number of shares after dilution is affected by the estimated allotment of shares as of September 30, 2024. However, this does not have any material effect on earnings per share.

Note 2 Key figures and performance measures

A list of definitions of key figures and performance measures reported in the consolidated financial statements can be found in Note 32 of the 2023 Annual Report.

Alternative performance measures

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

Net cash/debt

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

	9/30/2024	12/31/2023
Cash and cash equivalents	370	594
Liabilities to credit institutions	-150	-150
Lease-related liabilities	-100	-109
Net cash (+) /net liabilities (-)	120	335

Profit measurements and adjusted profit measurements

In this report, Biotage uses the performance measure EBIT (Earnings Before Interest and Taxes) as an alternative term for operating profit and EBITDA, (Earnings Before Interest, Depreciations, Amortizations and Taxes).

EBIT margin is an alternative term for the operating margin, which is calculated as operating profit divided by net sales. Operating profit is calculated as net sales, less cost of sales and operating expenses.

EBITDA is calculated as operating profit with reversal of depreciation and amortization of tangible and intangible assets. The EBITDA margin is EBITDA divided by net sales.

Biotage considers it helpful to present metrics and key ratios excluding non-recurring items, in order to make it easier for the reader to form an opinion about the underlying business. Non-recurring items refer to costs related to acquisition and restructurings and other non-recurring items of significant size.

To facilitate the reader to form an opinion about the cash flow from the underlying business, Biotage reports Adjusted cash flow from operating activities, where adjustments are made for non-recurring items and for income tax, where the payments are not always related to the reporting period.

The performance measures, how they relate to each other, and the effect of adjustments are shown in the tables below.

EBITDA	7/1/2024 9/30/2024	7/1/2023 9/30/2023	1/1/2024 9/30/2024	1/1/2023 9/30/2023	1/1/2023 12/31/2023
EBIT	65	65	208	172	314
Depreciations/amortizations on tangible and intangible assets	46	45	137	103	149
EBITDA	111	110	345	275	463
Adjusted EBITDA	7/1/2024 9/30/2024	7/1/2023 9/30/2023	1/1/2024 9/30/2024	1/1/2023 9/30/2023	1/1/2023 12/31/2023
EBITDA	111	110	345	275	463
Non-recurring items	13	7	35	49	55
Adjusted EBITDA	124	117	380	324	518
Adjusted cashflow	7/1/2024 9/30/2024	7/1/2023 9/30/2023	1/1/2024 9/30/2024	1/1/2023 9/30/2023	1/1/2023 12/31/2023
Reported cashflow from operating activities	109	103	252	130	284
Income tax	31	20	112	68	96
Non-recurring items	13	7	35	49	55
Adjusted cashflow	153	130	399	247	435

Organic growth and growth at comparable exchange rates

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

	7/1/2024 9/30/2024		7/1/2023 9/30/2023		1/1/2024 9/30/2024		1/1/2023 9/30/2023
	SEK millions	%	SEK millions	%	SEK millions	%	SEK millions	%
Net sales recognized in the comparative period	449		401		1,219		1,182
Net sales recognized in the period	490		449		1,474		1,219
Recognized change	41	9.1		48 12.1		255 21.0	37	3.2
Net sales for the period, excl. acquisitions	490		376		1,290		1,099
Change attributable to acquisitions	-	-		73 18.2		184 15.2		120 10.3
Net sales for the period at comparative period's exchange rates, excl. acquisitions	505		363		1,307		1,039
Change attributable to currency		-15 -3.3		13 3.4		-17 -1.4	60	5.0
Net sales for the period at comparative period's exchange rates, excl. acquisitions	505		363		1,307		1,039
Organic growth		56 12.4		-38 -9.5	88	7.2		-143 -12.1

Graphs of net sales and operating result

Biotage has chosen to report graphs of the net sales and adjusted EBITDA on a last twelve months (LTM) basis (see page 3) as corporate management also follows the development over time on a LTM basis and believes that this provides supplementary information to the calendar-based interim data otherwise given in the report.

		9/30/2024		9/30/2023
	1/1/2024 9/30/2024	10/1/2023 12/31/2023	LTM	1/1/2023 9/30/2023	10/1/2022 12/31/2022	LTM
Net sales	1,474	644	2,118	1,219	384	1,603
Adjusted EBITDA	380	194	574	324	89	413
Net sales, growth, %			32.1%			5.3%

Note 3

Pledged assets and contingent liabilities

In connection with the acquisition of ATDBio, Ltd., there has been an agreement on additional consideration of GBP 5 million, which may be due, provided that certain conditions are met. The terms mean that the additional consideration is expensed over time and owed to the extent that they are earned.

The excess part, SEK 1 (31) million on September 30, is a contingent liability.

Note 4 Composition of income

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

Revenue by sales channel	7/1/2024 9/30/2024	7/1/2023 9/30/2023	1/1/2024 9/30/2024	1/1/2023 9/30/2023
Direct sales through own sales channels	470	427	1,418	1,166
Sales through distributors	20	22	56	53
Total sales revenue	490	449	1,474	1,219
	7/1/2024	7/1/2023	1/1/2024	1/1/2023
Revenue by non recurring and recurring	9/30/2024	9/30/2023	9/30/2024	9/30/2023
Non recurring (Systems) Recurring (Consumables & Service)	139 351	158 291	411 1,063	454 765

Distribution by geographical markets and product areas

		Americas		EMEA		APAC		Total
	7/1/2024 9/30/2024	7/1/2023 9/30/2023	7/1/2024 9/30/2024	7/1/2023 9/30/2023	7/1/2024 9/30/2024	7/1/2023 9/30/2023	7/1/2024 9/30/2024	7/1/2023 9/30/2023
Small Molecules	89	83	61	72	49	62	199	217
Large Molecules	44	20	104	70	2	3	150	92
Drug Discovery & Development	133	103	165	142	51	65	349	309
Analytical & Diagnostic Testing	82	84	41	36	18	19	141	140
Summary	215	187	206	178	69	84	490	449

		Americas		EMEA		APAC		Total
	1/1/2024	1/1/2023	1/1/2024	1/1/2023	1/1/2024	1/1/2023	1/1/2024	1/1/2023
	9/30/2024	9/30/2023	9/30/2024	9/30/2023	9/30/2024	9/30/2023	9/30/2024	9/30/2023
Small molecules	225	246	186	190	158	212	569	648
Large molecules	118	48	328	117	9	5	455	170
Drug Discovery & Development	343	294	514	307	167	217	1,024	818
Analytical & Diagnostic Testing	277	238	118	110	55	53	450	401
Summary	620	532	632	417	222	270	1,474	1,219

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

Auditor's report

Biotage AB corp. reg. no. 556539-3138

Introduction

We have reviewed the condensed interim financial information (interim report) of Biotage AB as of 30 September 2024 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Uppsala, 23 October 2024

Öhrlings PricewaterhouseCoopers AB

Lars Kylberg

Authorized Public Accountant

This is Biotage

Our strategy of being the Global Go-To Separations Company offering high-quality solutions is driving attractive profitable growth. Biotage of today is a better balanced, sharply focused, and profitable business with a strong defendable market position.

Biotage is the Global Go-To Separations Company, supporting customers from drug discovery and development through to diagnostics and analytical testing with intelligent and sustainable workflow solutions. Our expertise and top-tier separation solutions play a key role in streamlining our customers' workflows and improving their outcomes. Headquartered in Sweden, Biotage operates globally with 700 employees, serving over 80 countries. Our company is listed on NASDAQ Stockholm (BIOT). Website: www.biotage.com

Biotage AB (publ)

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

This is where we're located

Biotage has 17 office locations in nine different countries. Five of these have research and development activities and five have manufacturing. Our own sales organization encompasses over 15 countries in North America, Europe, and Asia while our distribution network reaches countless additional countries in South America, Europe, Africa, the Middle East, and Asia. All in all, our products have a presence in over 80 countries.