Biohit Oyj

Annual Report (ESEF) • Mar 19, 2025

Biohit Oyj Annual Report 2024 2BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Table of Contents Highlights from 2024 5 CEO´s Review 7 Strategy 2025 9 Innovative Products 10 Corporate Governance Statement 2024 11 Information for Shareholders 18 Board of Directors 19 Group Management Team 21 Financial Statements 22 3BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Biohit in Brief “...a globally operating Finnish biotechnology company...” Biohit Oyj is a globally operating Finnish biotechnology company that develops diagnostic and other health products. Biohit’s mission is “Innovating for Health”. Biohit is headquartered in Helsinki and has subsidiaries in Italy and the United Kingdom. Biohit’s Series B shares (BIOBV) have been listed on NASDAQ OMX Helsinki since 1999, in the Small Cap / Healthcare segment. The company was established in 1988. 4BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Global Operations Biohit is a Finnish health technology company with profitable growth in international markets. 98.5% of Biohit’s business comes from exports. Clinical trials for the flagship product GastroPanel ® are ongoing in countries such as Belgium, Ireland, South Korea, and Chile. Biohit diagnostics is for sale in Europe, Asia and South America. In 2024, the most important regions in terms of sales were Europe and Asia. Biohit was actively involved in health technology trade fairs. Biohit had an impressive presence at MedLab in Dubai, UEGW in Vienna and Medica in Düsseldorf. “Innovations to improve the quality of life.” 5BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS GastroPanel ® Quick Test (GPQT) in India The clinical validation study of GPQT was successfully completed at Fortis Hospital in India, and the study report was submitted for publication in an international scientific journal. The results provided by the GPQT are highly consistent with those of the GastroPanel ELISA test. Since GPQT delivers results immediately, it serves as an excellent tool for point-of-care (POC) diagnosis of risk conditions of the stomach during a single clinical appointment. This leads to significant cost savings by eliminating the need for additional hospital visits. “ Not everyone with upper abdominal pain needs to be seen. GastroPanel ® can be used to screen a blood sample for patients who really need an endoscopy.” Professor Francesco di Mario Homerton study accepted for publication A study conducted by the British University Hospital confirms the diagnostic accuracy of Biohit’s GastroPanel ® test. Homerton University Hospital, London, conducted a clinical study to measure the performance of the GastroPanel ® test in identifying the risk conditions of gastric cancer in patients with upper abdominal complaints. The results confirm the reliability of the GastroPanel® test in screening for gastric cancer risk. Helsinki Internal Medicine Days 29 November 2024: Professor Francesco di Mario Francesco di Mario, Professor of Gastroenterology at the University of Parma, gave a lecture on atrophic gastritis and its diagnosis. The main messages of the lecture were: • Early diagnosis can save lives in cases of gastric cancer. • GastroPanel ® provides a reliable non-invasive diagnostic tool. Highlights from 2024 6BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS € € 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 2020 2021 2022 2023 2024 Summary 2024 Key figures 112/2024 112/2023 Revenue (MEUR) 14.3 13.1 EBITDA (MEUR) 2.9 2.2 Operative EBITDA (MEUR) 3.0 2.4 Operating profit/loss (MEUR) 2.6 1.8 Profit/loss before taxes (MEUR) 2.9 2.2 Profit/loss for the period (MEUR) 2.6 1.9 Average number of personnel 46 44 Number of personnel at the end of the period 46 46 Equity ratio (%) 78.6% 73.0% Earnings per share (EUR), Undiluted 0.17 0.12 Earnings per share (EUR), Diluted 0.17 0.12 Shareholders' equity per share (EUR) 0.80 0.62 Average number of shares during the period 15,161,374 15,097,153 Number of shares at the end of the period 15,181,593 15,113,593 Operative EBITDA 3.0 meur 98.5% 14.3 meur Revenue Equity ratio 78.6% Revenue from international operations Revenue 2020-2024, MEUR “Overall, 2024 was a strong year for Biohit.” Jussi Hahtela, President and CEO 7BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS President and CEO Jussi Hahtela Overall, 2024 was a strong year for Biohit. Our revenue grew from EUR 13.1 million the previous year to EUR 14.3 million. This is an increase of 9.2%. Operating profit amounted to EUR 2.6 million, up from EUR 1.8 million in the previous year. In addition to revenue, profitability also improved. The operating profit margin was 17.9%, while in 2023 it was 14.0%. The increase in revenue in 2024 was largely driven by additional sales to existing customers. By product group, the sales for the year were divided into two categories: Early in the year, we sold a large amount of lower-margin OEM products, while during the latter part of the year, the focus shifted to higher-margin in-house production. In terms of geography, sales were highly dispersed. There were some deals made, but the real theme for 2024 was the creation of opportuni- ties for the years to come. Much of the work we have done must remain behind a veil of business secrets, but a few major developments from last year were made public after the period under review. CEO’s review: Creating future opportunities 8BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS GastroPanel’s UK conquest took a leap in the right direc- tion after a study by the London-based Homerton University Hospital confirmed the test to be highly accurate. During the year, we secured extensive European distribu- tion rights for Biomedal’s gluten tests for Biohit. This is a move in line with our strategy. Our UK subsidiary has long combined the sale of Biohit’s own products and high-quality distribution products that complement the offering. The Biomedal distribution rights are the first step towards scaling the proven model to the entire company. Although, in accordance with our mission, the core of our operations will continue to be our own innovation, considering today’s regulatory climate, it is rational to also grow our product portfolio with distribution products. Our status as a premium operator and our existing sales organisation provide good conditions for this type of business scaling. One of our major endeavours last year was the develop- ment of the FAEX sample tube and perfecting it for sales. After realising that no high-quality sample collection tube that met our needs existed on the market, we developed one ourselves. The sample tube is quantitatively accu- rate and, being compatible with laboratory infrastructure, extremely versatile. Going forward, we will use the tube ourselves in our own ColonView (FIT) test, for example, as well as sell it to other test manufacturers and end users. Our successes in 2024 definitely include the letter of intent concluded with the Singapore-based Restalyst, which was announced in February 2025. Restalyst’s gastric cancer test perfectly complements Biohit’s GastroPanel test, which indicates risks for the very same cancer. The synergy benefits are significant, and the collaboration also opens up new sales channels for Biohit’s products through RestaGroup’s laboratories and cooperation network. Lessons from 2024 The lessons from the past year can be summarised as follows: 1. Even if you don’t hear anything from us, we are syste- matically creating future opportunities all the time. We will let you know when things are good and ready. We don’t believe in making premature announcements. 2. Biohit is a credible and desirable partner for other premium operators in gastrointestinal diagnostics. 3. We are doing the right things, but they sometimes move painfully slowly. You can’t control everything. Registrations are one thing, but distributors’ own processes are also slow, and even the validation of already registered products takes time. 4. There are always bumps in the road. Our products have been sold in several countries in the Middle East for years, but last year we had to postpone deliveries to the region for the first time due to challenges with payment transactions. Into the new year with our eye on the ball Thanks to a more efficient organisation, a product portfolio that offers added value and a clear strategy, we are entering the year 2025 with confidence in our own work and from a good starting position. Things are going in the right direc- tion. However, we can only reap the benefits once progress is made in dealing with regulation and changing the clinical practice guidelines, one country and market area at a time. Change is slow and there are bumps in the road. Showing off on a bumpy road is a bad combination, and that is why actions will also come before words in 2025. The biggest risks to growth relate to the Middle East. Visibility is still limited and our guidance assumes that sales volumes will not return to normal during the first half of the year. Guidance for 2025: We expect our revenue to rise to EUR 15.7–17.1 million in 2025 (an increase of 10–20% when compared to 2024) and our operating profit margin to be 10–20. “ Biohit is a credible and desirable partner for other premium operators in gastrointestinal diagnostics.” 9BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Strategy 2025 Ageing population Ingreasing gastrointestinal related problems Scarce health care resources Global problems - Global solutions Widening markets • Presence in all relevant markets • Europe, Asia, South America, North America Widening product portfolio • Sustainable high-quality offering • Dynamic portfolio management • Partnerships Active sales • Market driven sales • Need - Solution - Value-add • Closer to the customer Attractive for talents and investors • Profitable growing healthtech • Active talent acquisition • Active investor policy Annual growth 15-20% EBIT min 10% Vision: Gastrointestinal tract premium expert • Combining the business and the science • Innovations and collaborations • Premium brand • R&D 10BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Innovative Products GastroPanel ® quick test NT Revolutionary quick test innovation of GastroPanel® is available as a Point-of-Care test GastroPanel ® quick test NT is the further development of the unique Biohit GastroPanel ® examination. Sample can be easily taken from the fingertip and results are available within 15 minutes. GastroPanel ® quick test NT allows fast diagnosis of and screening for Helicobacter pylori, atrophic gastritis with related risks as well as high acid output of stomach in symptomatic and asymptomatic patients. GastroPanel ® quick test NT saves costs and unnecessary clinical appointments. It helps to target endoscopic examinations to those patients, who need them most urgently. It significantly improves the patient safety, as it speeds up the referral to further examinations, treatment and follow-up. Acetium ® capsule A unique innovation for protection of the stomach Acetium ® capsule is a patented product in 45 countries to protect the gastric mucosa from acetal- dehyde in people who have an acid-free stomach. Acetium ® capsule is indicated for gastric protec- tion in three high-risk groups: i) those with atrophic gastritis, ii) those taking PPIs or H2 blockers, iii) those with chronic Helicobacter pylori infection. Acetium ® capsule slowly release L-cysteine, an amino acid that binds acetaldehyde derived from alcohol, food and microbes in the stomach. The Acetium ® capsule effectively protects the stomach against the exposure to acetaldehyde and its carcinogenic effects. This can contribute to reducing the risk of gastric and oesophageal cancer in at-risk groups. Acetium ® lozenge - Patented in 64 countries: Sucking tablet for use in reducing tobacco and alcohol dependence. Helps to give up smoking without nicotine. BIOHIT FAEX™ -Sample System, for which a patent is pending in 2024. ColonView®-FIT-sample tube for the collection and storage of stool samples. For more information on the company’s innovations and products, visit: https://www.biohithealthcare.com/wp-content/uploads/2023/12/A-summary-about-Biohits-market-driven-and-ethical-activity-and-products.pdf Biohit´s R&D cooperation across different scientific fields, innovations and applications have established valuable results for the healthcare worldwide. 11BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Introduction Biohit Oyj has prepared this Corporate Governance State- ment based on Section 54 of the Finnish Corporate Gover- nance Code for listed companies issued by the Securities Market Association. The company will publish a separate remuneration report for the financial year 2024 for governing bodies according to the new shareholders right directive. The existing remuneration policy and information on the remuneration for the rest of the management team are published by https://investors.biohithealthcare.com/en/. The Report of the Board of Directors, Auditor’s Report, full Corporate Governance Statement, remuneration policy and the rest of the management team’s remuneration are avail- able at https://investors.biohithealthcare.com/en/. Rules observed by Biohit Biohit Oyj is a Finnish public limited company whose series B shares are listed on Nasdaq Helsinki in the Small cap/ Healthcare group. Biohit Group (hereinafter referred to as “Biohit”) comprises the parent company, Biohit Oyj and its foreign subsidiaries, which primarily focus on sales and marketing for Biohit Oyj’s products. Biohit is headquar- tered in Helsinki. Biohit’s governance complies with the applicable legis- lation, standards and recommendations concerning pub- lic listed companies, the regulations of Nasdaq Helsinki Ltd and Biohit Oyj’s Articles of Association. Biohit Oyj has administered its affairs in compliance with the corporate governance code 2025 for Finnish listed companies, and this Statement has been prepared in accordance with the code. The Corporate Governance Code is available at www.cgfinland.fi. Three of the members of the five-person Board of Direc- tors are independent of the company so the company fulfils recommendation number 10 stating that the majority of the members of the Board of Directors must be independent of the company. The Board of Directors evaluates its independence annually. The company strives to comply with high international standards of corporate governance and the key principles of corporate governance among Finnish listed companies. Biohitin´s administrative bodies 2024 The highest decision-making power at Biohit Oyj is exer- cised by the company’s shareholders at the Annual General Meeting. The company’s Board of Directors supervises the administration and organisation of the company and the Group’s earnings trends. The President & CEO is responsible for operative management and is assisted by the Manage- ment Team. Annual general meeting Biohit Oyj held its 2024 Annual General Meeting on 5 June in Helsinki. There were 2,108,000 A shares and 858,603 B shares represented at the meeting, corresponding to 19.55% of all the shares in the company and 59.99% of the votes. The meeting was attended by four of the five members of the Board of Directors, the President & CEO and the principal auditor. Board of directors The Board of Directors, which comprises 5–7 members elected by the Annual General Meeting, is responsible for the administration and appropriate organisation of Biohit’s Corporate Governance Statement 2024 12BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS  Approving the half year financial report annually for the period ending at the end of June  Deciding on Biohit’s business plan, budget and investment plan  Deciding on Biohit’s financing and risk management policies  Approving the remuneration and incentive schemes for senior managers  Appointing the President & CEO  Deciding on Biohit’s strategy, organisational structure, investments and other wide-reaching and significant issues The Board’s decision-making is based on the reports pre- pared by the company’s operative management on the operational development of the Group and its business units. The Chairman is responsible for convening Board meetings and arranging the work of the Board. The Board convenes 5–12 times per year, usually meeting once every month or once every two months, and the meeting schedule for the entire term is confirmed in advance. When necessary, Board meetings are held more frequently or by telecon- ference. Board of directors in 2024 Until the Annual General Meeting held on 5 June 2024, the following five people were on the Board of Directors: Vesa Silaskivi (chairman), Liu Feng, Kalle Härkönen, Lea Palo- heimo and Osmo Suovaniemi. At the Annual General Meet- ing, Liu Feng, Kalle Härkönen, Lea Paloheimo, Vesa Silas- kivi and Osmo Suovaniemi were re-elected to the Board of Directors to serve until the end of the Annual General Meeting in 2025. The Board of Directors elected Vesa Silas- kivi as its chairman. Biohit Oyj’s Board of Directors convened 10 times in 2024 (10 times in 2023). The average attendance was 96 per cent (96 per cent). Biohit Oyj’s Board of Directors on 31 December 2024 Vesa Silaskivi Chairman, (b. 1966), LL.D, Lic (BA)  Member of the Board since 2023  Independent of the major shareholders and the company  Professional board member since 2016, several senior management positions, for example in Valio, Elisa and HPP Attorneys Ltd  Attended 10 Board meetings in 2024  Direct shareholding: No shares Lea Paloheimo (b. 1951), PhD (clinical biochemistry), hospital chemist  Member of the Board since 2019  Independent of the major shareholders and the company  Employed by Biohit Oyj during 2001-2019, recently working as a Production and Product Development Director and Business Development Director  Attended 9 Board meetings in 2024  Direct shareholding: series B shares: 7,000 business operations. Proposals concerning membership of the Board of Directors are prepared by the Board of Directors. The recommendation of the Corporate Governance Code 2020 that both genders shall be represented on the board of directors has been replaced by a recommendation that there shall be balanced representation of women and men in the board of directors. Balanced representation of women and men shall be achieved no later than 30 June 2026. Until then, Recommendation 8 of Corporate Governance Code 2020 applies, according to which both genders shall be represented on the board of directors. One Board of Directors member out of five is woman and four are men. The share of women is thus 20% and the share of men 80%. The Board of Directors elects a chairman from amongst its members. Board members’ terms of office run from the date of their election by the AGM until the end of the next AGM. The Board’s areas of responsibility are stated in the writ- ten rules of procedure approved by the Board. They are as follows:  Increasing shareholder value  Ensuring the appropriate organisation of accounting and financial management  Approving Biohit Oyj’s financial statements, consoli- dated financial statements and the Report of the Board of Directors for the most recent financial period 13BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Group Management Team on 31 December 2024 The composition and areas of responsibility of the Group’s Management Team were as follows: Jussi Hahtela (Presi- dent & CEO), Jussi Sorvo (finance, ICT, HR), Ilari Patrakka (CCO), Suvi Elomaa (production), Panu Hendolin (R&D), Graham Johnson(sales and marketing) and Daniela Söder- ström (quality and regis tration). Two Group Management Team members out of seven are women and five are men. The share of women is thus 29% and the share of men 71%. Jussi Sorvo (b. 1990)  MSc (Econ.)  Finance, HR, ICT  With Biohit Oyj since 2021  Previously: Accountant, PwC  Direct shareholding: series B shares: 16,000 Ilari Patrakka (b. 1980)  MSc (Econ.)  Chief Commercial Officer until 14 January 2025  With Biohit Oyj since 2012  Previously: retail sales channel manager at Marioff Corporation Oy, marketing and export manager at Gasmet Technologies Oy, sales manager at Gasmet Technologies (Asia) Ltd.  Direct shareholding: series B shares: 20,116 Liu Feng (b. 1972), General Manager of Hefei Medicine Co., Ltd, Owner of Biohit Healthcare Hefei  Member of the Board since 2018  Non-independent of the major shareholders and of the company  Special researcher at the Counsellor’s Office of Anhui Provincial People’s Government  The vice chairman of the Chinese National Early Gastro intestinal-Cancer Prevention & Treatment Centre  Alliance member of the council of the China Health Promotion Foundation  Attended 9 Board meetings in 2024  Indirect shareholding via Biohit Healthcare (Hefei) Co., Ltd.: series A shares: 850,000, series B shares: 4,095,415 Kalle Härkönen (b. 1968), MSc. (Agriculture and Forestry)  Member of the Board since 2022  Independent of the major shareholders and the company  CEO at Foamit Group Oy  Attended 10 Board meetings in 2024  Direct shareholding: series B shares: 4,333 Professor Osmo Suovaniemi (b. 1943), MD, PhD  Member of the Board since 1988 and Chairman 2011-2021  Non-independent of major shareholders and of the company  Founder of Biohit and its former President & CEO  Attended 9 Board meetings in 2024  Direct shareholding: series A shares: 2,018,310; series B shares: 0 Board committees The Board of Directors have assessed that the scope of the Biohit Oyj’s business does not require the appointment of a separate Audit Committee, and consequently no separate committees have been appointed to increase the efficiency of the Board. President & CEO The President & CEO is responsible for the day-to-day management of the company in accordance with the instructions and regulations issued by the Board of Direc- tors. The President & CEO of the parent company is elected by the Board and acts as Group President. He also ensures the appropriate organisation and legality of the com- pany’s accounting and asset management. The terms of employment of the President & CEO are based on a written contract that is approved by the Board of Directors. The President & CEO cannot be elected Chairman of the Board. During the financial period, Jussi Hahtela MSc Econ. acted as the CEO. Jussi Hahtela (b. 1973)  MSc (Econ.)  With Biohit Oyj since 2021 (CFO until 1 September 2022)  Previously: Chief Strategist, Head of FX & Money Markets Sales Finland, Nordea Markets  Direct shareholding: series B shares: 40,000 14BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Suvi Elomaa (b. 1985)  Biotechnology and food engineer  Production Director  With Biohit Oyj since 2013  Previously: Project engineer at the Institute of Bio- medicine, Department of Physiology at University of Turku  Direct shareholding: series B shares: 16,000 Graham Johnson (b. 1977)  BSc (Hons) Biomedical Science  Head of Global Sales and Marketing, Managing Director Biohit Healthcare Ltd. (UK)  With Biohit Oyj since 2002, e.g. as Sales and Marketing Director (UK)  Previously: Virology in Public health laboratories  Direct shareholding: No shares Panu Hendolin (b. 1971)  Ph.D. (Molecular medicine)  Chief Technology Officer  At Biohit as R&D and Production Director in 2007-2008 as well as 2012-2017, Head of Technical Product mana- gement at Biohit from February 2022 to December 2022.  Previously: Production Director at United Medix Labora- tories Oy, Chief Technology Officer at Sulapac Oy.  Direct shareholding: series B shares: 13,177 Daniela Söderström (b. 1987)  MSc (Tech.)  Quality and Regulatory Affairs Director  With Biohit Oyj in the field of quality management since 2014  Direct shareholding: series B shares: 46,000 Management of subsidiaries The Managing Directors of the subsidiaries are responsible for the management of subsidiary operations and they report to the President & CEO of the parent company. The subsidiaries are responsible for the sales and marketing of Biohit’s products in their market areas. The managers of subsidiaries operate under the management and super- vision of Biohit’s President & CEO. In 2024, the Managing Directors of Biohit’s subsidiaries were: Graham Johnson (United Kingdom) and Franco Aiolfi (Italy). The personal details and shareholdings of Biohit Oyj’s Board of Directors and operative management are available at https://investors.biohithealthcare.com/en/. Decision-making procedure concerning remuneration The remuneration policy and the rest of the management team’s remuneration are available at https://investors.biohithealthcare.com/en/. 15BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Pension plans No other pension arrangements, beyond those mandated by law, have been made with the Managing Directors of Group companies. Main characteristics of internal control of the financial reporting process and risk management Biohit’s internal control is responsible for ensuring that the Group carries out its business operations within the framework of the current regulations and legislation and in accordance with the instructions of the Board of Direc- tors. Internal control seeks to ensure that the Group operates with maximum efficiency and that efforts are made at various levels of the organisation to achieve the objectives set in the strategy approved by the Board of Directors. Risk management is geared towards supporting the achievement of these objectives by anticipating and managing business-related risks. Control environment Biohit’s business operations and administration aim to realise the company’s values, of which the most important is to promote health and well-being through innovation. According to the strategy for 2024-2028, Biohit is a global intestinal tract expert, relating to which it carries out manu- facturing, sales and marketing activities. Biohit’s control environment is defined by the Board of Directors, which, as the highest administrative body, is responsible for organising internal control. The President & CEO is responsible for maintaining the efficiency of the control environment and the functionality of internal control. Biohit’s financial department is responsible for the func- tionality of financial reporting as well as the interpretation and application of financial statement standards in line with the separately approved instructions. Risk assessment In the assessment of the risks related to financial reporting, Biohit’s objective is to identify the major risks associated with the Group’s business operations and environment. The cost-effective management and monitoring of these risks will then ensure that the company’s strategic and opera- tional targets can be reached as intended. The Board of Directors carries the main responsibility for risk assessment and monitoring the implementation of risk management. The President & CEO works with the parent company’s operative management and subsidiaries’ managers to ensure that the Group’s risk management is duly arranged. The parent company’s operative manage- ment is responsible for identifying and managing the risks involved within each business area, while the subsidiaries’ Management Teams are responsible for those in their own market areas. Remuneration of members of the Board of Directors The Annual General Meeting approves the fees of Biohit Oyj’s Board of Directors. The remuneration paid to the other members of Biohit Oyj’s Board of Directors is decided by the company’s Board of Directors in accordance with the company’s rules on related-party transactions, which are described in the section “related-party transactions”. President & CEO and other company management The Board approves the President & CEO’s remunera- tion and terms of employment. The severance payment is dependent on the duration of the CEO’s term. The Board approves the remuneration and terms of employment of members of the Management Team. Biohit Oyj’s Board of Directors approves the principles of the incentive schemes for Management Team members and the Presi- dent & CEO. The President & CEO approves the salaries and profit-based incentives of subsidiaries’ Managing Directors in accor- dance with the instructions provided by Biohit’s Board of Directors. Profit-based incentives are dependent on sales and profitability trends for each unit. 16BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS policy also specifies who is responsible for communica- tions in different situations. Biohit’s financial department regularly provides infor- mation on processes related to financial administration reporting. This ensures the real-time availability of data, which is a prerequisite for efficient internal control. Financial administration guidelines and the company’s information release policy aim to ensure the promptness and comprehensiveness of communications as well as the release of the information required for internal control purposes. Monitoring The efficiency of internal controls on financial reporting is overseen by the Board of Directors, the President & CEO, Management Team members and the Managing Directors of subsidiaries. Control focuses on following weekly and monthly financial reports and forecasts and analysing any deviations from business plans. Monitoring is performed at all Board and Management Team meetings where reports are reviewed. It is supported by regular contact between Group Management and the company’s auditor, and analysis of any deviations, which occurs at least once per quarter. The audit frameworks for the Group’s subsidiaries and key audit areas are jointly defined by the Group’s financial management and the chief auditor. Biohit has not appointed a pany provides the reporting systems necessary for busi- ness and financial management. The financial department of the parent company provides instructions for drawing up annual and interim financial statements and prepares the consolidated financial statements. The parent company’s finance department retains central control of funding and administrative matters within the framework of the instructions provided by the Board of Directors and the President & CEO and is also responsible for the management of interest and exchange rate risks. The Managing Directors of the subsidiaries ensure that the subsidiaries’ reporting is carried out in accordance with the instructions given by the Group’s Management Team. The parent company’s administration department controls and provides instructions on Group-level personnel poli- cies and any agreements made within the Group. Disclosure policy Biohit aims to provide all its stakeholders with informa- tion about the company’s operations in a proactive, con- sistent and timely manner. The company seeks to take the special requirements and interests of all its stakeholders into account in its communications in order to increase confidence in the company and thereby promote its busi- ness operations. Biohit’s Board of Directors has approved an information release policy with a view to ensuring the accuracy and reliability of any information released. The Risk management is one of the areas covered by Biohit’s internal control processes, which regularly monitor the risks associated with the company’s business operations, identify any changes and, if necessary, take appropriate action to hedge against them. Risk management focuses on ensuring the continuity of business operations and pre- venting financial misconduct. Control measures Internal control measures are integrated into the Group’s general business management and reporting process. The subsidiaries report to Group Management on business and earnings trends and the most significant deviations on a monthly and quarterly basis. The Group’s Manage- ment Team reports to the Board of Directors on the overall development of business; these two bodies, together with the President & CEO, decide on overall corporate strate- gies and procedures guiding the operations of the Group. The subsidiaries’ Boards follow business developments and ensure that the parent company’s approved instruc- tions and guidelines are followed. As a rule, the Boards of Directors of the subsidiaries meet monthly. Board work in the subsidiaries is based on financial reports and the writ- ten monthly and annual reports drawn up by subsidiary management. Biohit’s business control is carried out in accordance with the management system described hereinabove. The com- 17BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS invoiced auditors’ fees for the 2024 financial period totalled EUR 166,000 (EUR 124,000 in 2023). In addition to this, PricewaterhouseCoopers Oy was paid a total of EUR 30,000 for other services (EUR 3,000 in 2023). Related party transactions The company keeps a list of its related parties, and it regu- larly engages in transactions with some of these parties. These transactions are related to the company’s ordinary business activities, they are appropriate in terms of the company’s operations and they are executed on ordinary market terms. The company’s financial management monitors and supervises related-party transactions as part of the com- pany’s normal reporting and supervision practices. Relevant transactions between the company and its related par- ties are reported annually in the notes to the company’s consolidated financial statements. The company’s Board of Directors makes all the relevant decisions concerning related-party transactions. Decision-making is based on particularly thorough preparation and appropriate reports, statements and estimates. Preparation of the related-party transactions, decision-making and approval have been arranged to take account of the disqualification rules and appropriate decision-making entities. Biohit Oyj’s Board of Directors made the following decision on 2024 related party transactions: 1. As part of his work as the head of scientific advisory board, Osmo Suovaniemi’s compensation amounted EUR 111,000 (2023: EUR 144,000). 2. As part of his work as the managing director of Biohit Healthcare S.r.I, Franco Aiolfi will be paid a fixed fee of EUR 18,000 in 2024 (2023: EUR 18,000). 3. The members of the scientific advisory board will be paid EUR 85 per hour for the work outside the scientific advisory board. Insiders Biohit applies the Guidelines for Insiders approved by Nasdaq Helsinki Ltd as well as any relevant amendments. Biohit’s President & CEO is responsible for insider control. He ensures that those who handle insider information are aware of the insider regulations and that they adhere to the trading restrictions. Insiders are not allowed to trade Biohit Oyj securities for 30 days before the publication of the company’s financial statement bulletin and interim reports. Insiders participating in projects are not allowed to trade shares in Biohit before an announcement has been made of the continuation or discontinuation of a project. Information on the shareholdings of Biohit’s insiders and their trading activity is available at https://investors.biohithealthcare.com/en/. separately organised function for internal auditing purposes, but Biohit’s financial department has the responsibility to implement it in practice. The Group has internal control reporting systems required for financial management and monitoring business develop- ment. The reporting systems produce monthly financial data so that financial management can ensure compliance with the parent company’s approved instructions on matters such as authorisation. The Group’s auditor and the auditors of each subsidiary evaluate the effectiveness of the internal control system in connection with the external audit. Audit 2024 The auditor elected by the AGM is responsible for Biohit’s statutory audit. According to the Articles of Association, the company must have one auditing body approved by the Central Chamber of Commerce. The 2024 Annual General Meeting re-elected auditing firm PricewaterhouseCoopers Oy as the company’s auditor for a one-year term, with Tiina Puukkoniemi, Authorised Public Accountant, as chief auditor. Auditor and auditor’s fees The 2024 Annual General Meeting decided to pay auditor’s fees in accordance with the auditor’s invoice. The Group’s 18BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Information for Shareholders General meeting of shareholders Biohit Oyj’s Annual General Meeting has been planned for Wednesday 4 June 2025 in Helsinki. The Board of Directors will call the General Meeting at a later date. Board´s proposal for distributing of profit The parent company’s distributable funds (unrestricted equity) on 31 December 2024 are EUR 8,222,057.08 of which the period net profit is EUR 2,406,631.87. The Board of Directors proposes to the Annual General Meeting that no dividend be paid for the fiscal year. Shares Total number of shares: 15,181,593 (15,113,593 in 2023) Series A shares (20 votes per share): 2,975,500 (2,975,500 in 2023) Series B shares (1 vote per share): 12,206,093 (12,138,093 in 2023) Biohit Oyj’s series B shares are listed in the Nasdaq Helsinki Ltd Small Cap group. The shares are traded under the symbol BIOBV. More detailed information about Biohit Oyj’s shares is provided in the notes to the consolidated financial statements and on the company’s website at https://investors.biohithealthcare.com/en/. Financial communication The financial reviews and other stock exchange releases published by Biohit are available on the company’s web- site at https://investors.biohithealthcare.com/en/. You can also subscribe to receive financial communications by email using the subscription form on the website. Next financial report The half-year financial report for January - June 2025 (H1) will be published on Wednesday 6 August 2025. Silent period Biohit observes a silent period of 30 days before results are published. During this period, Biohit’s management and other personnel will not provide information about the company’s financial position or market related com- ments, nor will they meet with representatives from equity markets or the financial media. However, if an event that requires immediate publication takes place during the silent period, Biohit will publish information without delay in accordance with disclosure regulations. In such cases, the company is able to comment on the event. 19BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Boards of Directors Liu Feng born in 1972 General manager of Hefei Medicine Co., Ltd, Member of the Board of Biohit Oyj since 2018 Non-independent of the major shareholders and of the company Other relevant experience:  Special researcher at the Counselor’s Office of Anhui Provincial People’s Government  The vice chairman of the Chinese National Early GastrointestinalCancer Prevention & Treatment Center Alliance  Member of the council of the China Health Promotion Foundation.  In 2013, Liu Feng and his companies and Biohit Oyj established a joint venture Biohit Healthcare (Hefei) Co., Ltd Vesa Silaskivi born in 1966 LL.D, Lic (BA) Chairman of Biohit Oyj’s Board of Directors Member of the Board since 2023 Independent of the major shareholders and the company Other relevant experience:  Professional board member since 2016, several senior management positions, for example in Valio, Elisa and HPP Attorneys Ltd Lea Paloheimo born in 1951 PhD (clinical biochemistry), hospital chemist Member of the Board of Biohit Oyj since 2019 Independent of the major shareholders and the company Other relevant experience:  With Biohit Oyj during the years 2001-2019. Production and Product Development Director, Business Develop ment Director 20BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Boards of Directors Kalle Härkönen born in 1968 Foamit Group Oy, CEO Member of the Board of Biohit Oyj since 2022 Independent of the major shareholders and the company Other relevant experience: More than 25 years of experience in international business in various industries, especially in managing and developing companies and their global supply chains through digitalization and innovation.  Teknos Group Oy, Deputy CEO, COO, Head of Group Operation and Logistics, 2016 – 2020  Fazer Confectionery Ltd, Vice President Supply chain & sourcing, 2013 – 2016  Sartorius Biohit Liquid Handling Oy, part of Sartorius Lab Holding GmbH, Vice President, Liquid Handling Operation, 2012 – 2013  Biohit Oyj, Chief Operational Officer (COO), 2001 – 2012 Osmo Suovaniemi born in 1943 MD, PhD, Professor Member of the Board of Biohit Oyj since 1988, Chairman 2011-2021 Non-independent of the major shareholders and of the company Other relevant experience:  The founder of Biohit Oyj  The founder, main shareholder, chairman, and CEO of Labsystems Oyj and Eflab Oy  Received an award in 1992 for having most patents in Finland.  A board member, vice-chairman, and chairman of the General Industry Group in Finland in 1978-1986  A board member of the Confederation of Finnish Industry in 1986  A member of the Academy of Technical Sciences from 2003 21BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Group Management Team Daniela Söderström born in 1987 MSc (Tech.), Quality and Regulatory Affairs Director With Biohit Oyj since 2014. Jussi Hahtela born in 1973 MSSc, President and CEO With Biohit Oyj since 2021. Panu Hendolin born in 1971 Ph.D. (Molecular medicine), Chief Technology Officer With Biohit Oyj since 2022. Suvi Elomaa born in 1985 Biotechnology and food engineer, Production Director With Biohit Oyj since 2013. Graham Johnson born in 1977 Head of Global Sales and Marketing, Managing Director Biohit Healthcare Ltd. (UK) With Biohit Oyj since 2002. Jussi Sorvo born in 1990 MSc (Econ.), CFO With Biohit Oyj since 2021. 22BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Financial Statements 1. Report by the Board of Directors 23 2. Consolidated Financial Statements 29 Consolidated Comprehensive Income Statement 29 Consolidated Balance Sheet 30 Statement of Changes in Consolidated Shareholders´ Equity 31 Consolidated Cash Flow Statement 32 Notes to the Consolidated Financial Statements 33 3. Key Indicators 63 4. Shares and Shareholders 65 5. Formulae for Calculating Key Indicators 68 6. Parent Company’s Financial Statements 69 7. Board of Director´s Proposal Regarding the Distribution of Profits* 82 8. Auditor´s Report 83 * Part of the financial statements 23BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS 1. Report by the Board of Directors 2024 Summary  Revenue EUR 14.3 million (EUR 13.1 million)  Revenue grew by 9.2% compared to year 1-12/2023  Operative EBITDA EUR 3.0 million (EUR 2.4 million)  Cash at the end of the period EUR 3.7 million (EUR 3.3 million)  ROE 23.8% (21.9%)  Revenue from international operations 98.5% (98.4%) of total revenue  Equity ratio 78.6% (73.0%) Biohit’s revenue grew 9.2% from the previous year. Profitability has also improved. EBIT-% was 17.9% compared to 14.0% in 2023. The strong balance sheet creates good conditions to further develop business and to stay on the growth track. Biohit’s equity ratio was 78.6% at the end of the financial year (73.0%). The company’s financial assets totalled EUR 6.6 million (EUR 6.7 million). Biohit Group key figures 1-12/2024 1–12/2023 Revenue (MEUR) 14.3 13.1 EBITDA (MEUR) 2.9 2.2 Operative EBITDA (MEUR) 3.0 2.4 Operating profit/loss (MEUR) 2.6 1.8 Profit/loss before taxes (MEUR) 2.9 2.2 Profit/loss for the period (MEUR) 2.6 1.9 Average number of personnel 46 44 Number of personnel at the end of the period 46 46 Equity ratio (%) 78.6% 73.0% Earnings per share (EUR), Undiluted 0.17 0.12 Earnings per share (EUR), Diluted 0.17 0.12 Shareholders' equity per share (EUR) 0.80 0.62 Average number of shares during the period 15,161,374 15,097,153 Number of shares at the end of the period 15,181,593 15,113,593 24BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Reporting Biohit’s product portfolio consists of diagnostic tests, analysis systems, products binding carcinogenic acetaldehyde into a harmless compound and monoclonal antibodies. The entire product and service portfolio is reported under a single segment. Revenue and EBIT Revenue grew by 9.2% from 2023. Revenue from international operations was 98.5% (98.4%) of total revenue. EBIT was EUR 2.6 million (EUR 1.8 million). Balance sheet, financing and operational continuity On 31 December 2024 the balance sheet totalled EUR 15.5 million (EUR 12.9 million on 31 Dec 2023). At the end of the reporting period our equity ratio stood at 78.6% (73.0% 31 Dec 2023). Profitable financial period increased the balance sheet. Biohit Oyj has a stable financial position. On 31 December 2024, the company’s financial assets totalled EUR 6.6 million (EUR 6.7 million) which does not include Genetic Analysis AS shares. The company has managed to keep its working capital on a good level and the manage- ment believes that working capital will cover the operations for the next 12 months and the company is not dependent on external financing to be able to guarantee the continuity of its operations. Cash flow from operating activities was EUR 0.6 million during the review period and EUR 2.1 million during the second half of the year. The company’s management assess- ment is that the company’s ability to continue its operations is good and there are no indi- cations of events or circumstances that alone or combined might give a significant reason to doubt the organisation’s ability to continue its operations. Consolidated revenue and operating profit 2024 2023 Revenue MEUR 14.3 13.1 Operating income MEUR 2.6 1.8 Bridge calculation of EBITDA EUR million 1-12/2024 1-12/2023 Operating profit/loss 2.6 1.8 Depreciation and amortisation 0.3 0.4 EBITDA 2.9 2.2 Bridge calculation of operative EBITDA EUR million 1-12/2024 1-12/2023 Operating profit/loss 2.6 1.8 Depreciation and amortisation 0.3 0.4 IFRS 2 Share based payments 0.1 0.2 Operative EBITDA 3.0 2.4 Alternative performance measures 25BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Investments Gross investments during the 1-12/2024 reporting period totalled EUR 0.4 million (EUR 0.2 million). Personnel During the review period, the Biohit Group employed on average 46 (44) people of whom 36 (35) were employed by the parent company and 10 (9) by the subsidiaries. Short-term risks and uncertainty factors Biohit’s key risks are related to the success of product registrations as well as the selec- tion and development of new market areas and distribution channels. The diagnostic industry is heavily regulated, and this may have an effect on Biohit’s sales. The duration of the product registration process is different in each market area. For this reason, conquering new markets may be slow. It is also critical to implement the changes required by the new IVDR EU regulation so that sales of the existing products can continue. When investing liquid assets, the objective is to gain a return on investment with a low risk of equity loss. The investment portfolio consists of deposits, investment funds and corporate loans. A fundamental aspect in portfolio management is sufficient diversification across different asset classes, investment instruments and counterparties. The invest- ment portfolio is subject to equity risk that is managed by diversification and allocation decisions. The portfolio is also subject to interest rate risk, which is managed by adjusting the duration of the portfolio. In addition, general instability in the financial markets may have a negative impact on the value of the investment portfolio. The Group’s investment in listed Genetic Analysis AS is subject to changes in share price and the EUR/NOK foreign exchange rate. Biohit’s customer base is widely diversified, with the exception of GastroPanel ® sales in China, which currently represents a major single business for Biohit. Biohit HealthCare (Hefei) Co. Ltd. has, based on a security agreement signed on 8 February 2022, pledged to Biohit 1,500,000 class B Biohit shares as security for its obligations referred to therein. The pledge significantly decreases the risks that are related to sales in China. Single customer or geographical territory related risk may have a financial impact. How- ever, Biohit’s customer base is widely diversified and thus the company is not significantly dependent on individual customers or project deliveries. The balance sheet and sales of Biohit’s UK subsidiary are in GBP. As a result, Biohit is exposed to the risk of GBP weakening. Otherwise, most of the company’s business is con- ducted in EUR and the indirect effects of the currency exchange rate fluctuations are con- sidered insignificant. Outlook for 2025 Biohit expects its revenue to grow to 15.7 – 17.1 million euros (10 – 20% growth from previous year) and EBIT-% to be 10-20. 26BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Main events in the financial year Turnover continued to grow profitably Biohit’s revenue continued to grow reaching EUR 14.3 million (2023: EUR 13.1 million, growth 9.2%). The profitability also improved. Operative EBITDA was EUR 3.0 million. Growth from the previous year was EUR 0.6 million. EBIT rose to EUR 2.6 million from EUR 1.8 million in 2023. Gross margin was 62.2% (61.6% in 2023). Implementation of the strategy released at the end of 2023 proceeded as planned. Product portfolio has widened by own innovations and collaboration with partners. Market widening has been pushed forward for example by starting FDA process to get a selling license for GastroPanel in the USA. Biohit was granted funding for two R&D projects by the European Union and Business Finland in 2021. The total amount of these grant fundings is EUR 0.9 million, of which EUR 0.1 million was deferred as revenue to the reporting period. Centre for Economic Develop- ment, Transport and the Environment decided to grant Biohit Oyj EUR 0.2 million support for corporate development. This support had no financial impact on the reporting period. In 2022 the Italian subsidiary made EUR 0.3 reservation regarding the Italian state’s demand of ex post compensation from suppliers of medical equipment for the budget over- runs of the Italian administrative regions in the years 2015-2019. Like other operators in the field, Biohit has denied the demands. Reservation decreased the 2022 revenues. The matter is still under consideration. The provision has been written down with an impact of EUR 0.0 million in 2024. Biohit owns 2.88% of the listed Norwegian Genetic Analysis AS. Valuation of the shareholding decreased by EUR 0.0 million to EUR 0.1 million in 2024. Research and development as well as clinical studies R&D operations focus on innovations, as well as product development and further improved usability. Biohit also employs external experts and subcontractors in its R&D operations. In 2024 EUR 0.3 million of development expenditure was capitalised (EUR 0.2 million). Research and development expenditure during the 1-12/2024 reporting period amounted to EUR 1.1 million (EUR 1.2 million) of which the second half-year accounted for EUR 0.6 million (first half-year EUR 0.5 million). According to the strategy R&D works to widen product portfolio. Patented and IVDR registered FAEX Sample System was launched after reporting period. Otherwise, R&D of the new products proceeded as planned in 2024. Like in 2023, IVDR and MDR related regulation compliance consumed extensive resources, but this was provided for. Financial reporting Biohit Oyj publishes financial reviews twice per year. In 2025 Biohit will publish the half-year financial report for period January - June 2025 (H1) at 9:30 am on Wednesday 6 August 2025. Major events after the close of the review period The company’s management is not aware of any other material events which have occurred since the balance sheet date. 27BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Related party loans The CEO of the group has been granted a market-based long-term loan of EUR 40 thou- sand (EUR 20 thousand) and the management team EUR 98 thousand (EUR 97 thou- sand). The loan interest rate is 12-month Euribor. Interest is paid annually in arrears. The loan period is five years. The borrower is entitled to pay back the loan early. Government Annual General Meeting in 2024 AGM decided on 5 June, 2024, as suggested by the Board of Directors, that no dividend will be paid for financial year 2023. The AGM resolved that five (5) members are elected to the Board of Directors and that CEO Liu Feng, CEO Kalle Härkönen, PhD Lea Paloheimo, LL.D, Lic (BA) Vesa Silaskivi and pro- fessor h.c., MD, PhD Osmo Suovaniemi are elected as members of the Board of Directors until the end of the next AGM. AGM decided to choose PricewaterhouseCoopers as the audit firm. Biohit Oyj’s Management Team The members of Biohit’s Management Team are: CEO Jussi Hahtela, CFO Jussi Sorvo, Production Director Suvi Elomaa, Research and Development Director Panu Hendolin, Head of Global Sales and Marketing Graham Johnson and Quality and Regulatory Affairs Director Daniela Söderström. Shares and shareholders Trading and share price development Biohit Oyj’s number of shares is 15,181,593 (15,113,593), of which 2,975,500 (2,975,500) are Series A shares and 12,206,093 (12,138,093) are Series B shares. The Series B shares are quoted on NASDAQ Helsinki in the Small cap/Healthcare group under the code BIOBV. BIOBV/NASDAQ OMX Helsinki 1-12/2024 1-12/2023 High (EUR) 2,65 2,22 Low (EUR) 1,80 1,57 Average (EUR) 2,11 1,93 Latest (EUR) 2,29 1,89 Turnover (EUR) 5,837,490 5,163,409 Turnover volume 2,767,265 2,680,632 Shareholders At the end of the reporting period on 31 December 2024 the company had 8,270 share- holders (7,923 on 31 December 2023). Private households held 60.1% (60.3%), companies 5.5% (5.3%) and public sector organisations 0.0% (0.0%). Foreign ownership or nominee registrations accounted for 34.4% (34.5%) of shares. Further information on the shares, major shareholders and management shareholdings is available on the company’s website: https://investors.biohithealthcare.com/en/. 28BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Board´s proposal for distributions of profits The parent company’s distributable funds (unrestricted equity) on 31 December 2024 are EUR 8,222,057.08 of which the period net profit is EUR 2,406,631.87. The Board of Directors proposes to the Annual General Meeting that no dividend be paid for the fiscal year. AGM in 2025 Biohit Oyj’s Annual General Meeting has been planned for Wednesday 4 June 2025. The Board of Directors will call the General Meeting later. Corporate Governance Statement Biohit Oyj will release a separate Corporate Government Statement at: https://investors.biohithealthcare.com/en/investors/corporate_governance. Helsinki 11 February, 2025 Biohit Oyj Board of Directors 29BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS 2. Consolidated Financial Statements € 1,000 Note 1 Jan - 31 Dec 2024 1 Jan - 31 Dec 2023 Revenue 2.3 14,283 13,076 Change in inventories of finished and unfinished products 230 90 Other operating income 2.5 79 279 Materials and services 2.6 -5,174 -4,702 Expenses arising from employment benefits 2.7 -4,000 -4,086 Other operating expenses 2.8 -2,520 -2,468 EBITDA 2,898 2,188 Depreciation and amortization 2.10 -341 -364 Operating profit/loss 2,557 1,825 Financial income 2.11 633 530 Financial expenses 2.11 -322 -159 Profit/loss before taxes 2,868 2,195 Income taxes 2.12 -299 -344 Profit/loss for the financial period 2,568 1,851 Other items of comprehensive income Items that may later be reclassified through profit and loss Translation differences 47 12 Items that will not be reclassified through profit and loss Changes in the fair value of equity instruments measured at fair value through other comprehensive income -46 -173 Total comprehensive income for the period 2,570 1,691 Distribution of profit/loss for the financial period To the owners of the parent company 2,568 1,851 Total 2,568 1,851 Distribution of comprehensive income for the financial period To the owners of the parent company 2,570 1,691 Total 2,570 1,691 Earnings per share calculated from earnings attributable to the owners of the parent company Undiluted earnings per share (EUR) 2.13 0.17 0.12 Diluted earnings per share (EUR) 2.13 0.17 0.12 Consolidated comprehensive income statement 30BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS € 1,000 Note 31 Dec 2024 31 Dec 2023 Assets Non-current assets Intangible assets 2.14 492 183 Property, plant and equipment 2.15 171 140 Right-of-use assets 2.15, 2.16 531 626 Contract assets 2.17, 2.21 3,200 - Other non-current financial assets 2.17 139 118 Deferred tax assets 2.19 18 20 Total non-current assets 4,551 1,087 Current assets Inventories 2.20 1,029 890 Trade and other receivables 2.17, 2.21 3,213 4,129 Other current financial assets 2.17 2,964 3,543 Cash and cash equivalents 2.17, 2.18 3,745 3,271 Total current assets 10,952 11,833 Total assets 15,502 12,920 Consolidated balance sheet € 1,000 Note 31 Dec 2024 31 Dec 2023 Shareholder’s equity and liabilities Shareholders' equity Share capital 2.22 2,350 2,350 Fair value reserve 2.22, 2.23 -1,919 -1,873 Invested unrestricted equity fund 2.22, 2.23 5,274 5,206 Translation differences -48 -95 Retained earnings 6,534 3,837 Shareholders' equity attributable to shareholders of the parent company 12,191 9,426 Total shareholders’ equity 12,191 9,426 Long-term liabilities Lease liabilities 2.16, 2.18, 2.24 284 427 Deferred tax liabilities 2.19, 2.25 2 2 Other liabilities 2.18, 2.25 6 7 Total long-term liabilities 293 436 Short-term liabilities Trade payables 2.17, 2.25 679 465 Tax liabilities 2.17, 2.25 424 371 Lease liabilities 2.16, 2.18, 2.24 303 275 Accruals and other liabilities 2.25 1,612 1,947 Total short-term liabilities 3,018 3,059 Total shareholders' equity and liabilities 15,502 12,920 31BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Statement of changes in consolidated shareholders´ equity Shareholders' equity attributable to shareholders of the parent company € 1,000 Share capital Invested unrestricted equity fund Translation differences Fair value reserve Retained earnings Total shareholders' equity Shareholders’ equity 1 January 2024 2,350 5,206 -95 -1,873 3,837 9,426 Share-based payments - - - - 127 127 Exercise of share options - 68 - - - 68 Adjustments of translation differences - - - - 1 1 Total comprehensive income for the period - - 47 -46 2,568 2,570 Shareholders’ equity 31 December 2024 2,350 5,274 -48 -1,919 6,534 12,191 Shareholders' equity attributable to shareholders of the parent company € 1,000 Share capital Invested unrestricted equity fund Translation differences Fair value reserve Retained earnings Total shareholders' equity Shareholders' equity 1 January 2023 2,350 5,138 -107 -1,701 1,777 7,458 Share-based payments - - - - 209 209 Exercise of share options - 68 - - - 68 Adjustments of translation differences - - - - 0 0 Total comprehensive income for the period - - 12 -173 1,851 1,691 Shareholders' equity 31 December 2023 2,350 5,206 -95 -1,873 3 837 9,426 32BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Consolidated cash flow statement € 1,000 Note 2024 2023 Cash flow from operating activities Profit/loss for the financial period 2,568 1,851 Adjustments to profit for the financial period Business activities with no payment transactions 99 224 Depreciation and impairment 2.10 341 364 Unrealised exchange rate gains and losses -2 2 Financial income and expenses -311 -371 Income taxes 2.12 299 344 Total adjustments to income for the financial period 426 563 Change in working capital Increase (-)/ decrease (+) in short-term interest-free trade receivables -2,254 -1,392 Increase (-)/ decrease (+) in inventories -130 34 Increase (-)/ decrease (+) in short-term interest-free liabilities -150 -16 Total change in working capital -2,534 -1,375 Interest paid -35 -361 Interest received 377 355 Realised exchange rate gains and losses 28 28 Income tax paid -245 -160 Net cash flow from operating activities 586 902 € 1,000 Note 2024 2023 Cash flow from investments Investments in tangible and intangible assets -402 -248 Investments in funds and deposits * -1,017 -2,826 Profit from the sale of investments in funds and deposits 1,520 2,425 Loans granted -21 -60 Net cash flow from investments 80 -710 Cash flow from financial activities Repayment of lease liabilities -298 -267 Exercise of share options 68 68 Net cash flow from financial activities -230 -199 Change in financial assets 435 -6 Cash and cash equivalents at the beginning of the period * 3,271 3,268 Effects of changes in exchange rates 38 10 Cash and cash equivalents at the end of the period 3,745 3,271 * The presentation method of one bank account has been changed from the previous year in the balance sheet and in the consolidated cash flow statement. The bank account was previously presented in “Other current financial assets” and its cash flow in cash flow from investments. The bank account has been reclassified to “Cash and cash equivalents” based on a more detailed analysis. Comparison period figures have been updated to be equivalent to the reclassification in both consolidated balance sheet and cash flow statement. Bank account balance and the adjusted sum at the end of the reporting period was 86 thousand EUR (31 December 2023: 245 thousand EUR and 1 January 2023: 1,146 thousand EUR). Year 2023 restated net cash flow from investments was 902 thousand EUR lower. 33BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS 2.1 Basic information on the company Biohit Oyj is a Finnish public limited company that manufactures that bind acetaldehyde, diagnostic products and systems for diagnostic analysis for the use of research institutions, healthcare and industry. The parent company’s domicile is Helsinki, Finland. A copy of the consolidated financial statements is available on the website, www.biohithealthcare.com, and at the headquarters of the Group’s parent company at Laippatie 1, Helsinki, Finland. Biohit Oyj’s Board of Directors approved the financial statements for publication on February 12th 2025. In accordance with the Finnish Limited Liability Companies Act, shareholders have the opportunity to approve or reject the financial statements at the Annual General Meeting, which is to be held after the financial statements have been published. At the Annual General Meeting, it is also possible for a decision to be made to alter the financial statements. 2.2 Accounting principles Accounting principles These financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) endorsed by the European Union. The IAS and IFRS standards that were valid on 31 December 2024 have been followed, as well as SIC and IFRIC interpretations. The IFRS refer to standards and interpretations thereof approved for application in the EU in compliance with the proceedings stipulated in Regulation (EC) 1606/2002, as referred to in the Finnish Accounting Act and subsequent regulations. The notes to the consolidated financial statements also comply with Finnish accounting and corporate legislation. The consolidated financial statements have been prepared in compliance with the principle of operational continuity. Despite its loss-making financial periods, the company has succeeded in keeping its working capital at a good level and the company believes that it is sufficient to cover the next 12 months of operations. The company is not dependent on external financing to guarantee operational continuity. In the assessment of the company’s senior management, the company’s capacity to continue operating is good, and there are no foreseeable events or conditions that could occur individually or in combination to give major cause to doubt the company’s ability to continue operating. The consolidated financial statements have been prepared on the basis of acquisition cost with the exception of equity investments recognised at fair value through other compre- hensive income and financial assets and liabilities recognised at fair value through profit or loss. The financial statements are presented in thousands of euros. The figures presented in the financial statements are rounded from precise figures, so the combined total of indi- vidual figures may differ from the total sum presented. Indicators have been calculated using precise values. The preparation of IFRS-compliant financial statements requires the Group management to make certain estimations and judgments when applying the Group’s accounting policies. Information on judgements that the management has made when applying the Group’s accounting principles and that have the most significant effect on the figures presented in the financial statements are presented under “Accounting policies calling for judgements by the management and key sources of estimation uncertainty”. Notes to the Concolidated Financial Statements 34BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Presentation method The Group’s income statement is presented as a single calculation in which the share of the income accounted for by the Group’s ongoing operations is presented first and income due to discontinued operations is then presented on a single line. In the 2023 and 2024 financial periods Biohit had no discontinued operation to present. Consolidation principles The consolidated financial statements include the parent company, Biohit Oyj, and all its subsidiaries. Subsidiaries are companies over which the Group exercises control. The Group has a controlling interest in a company if, by being involved in the company, it is exposed to fluctuating returns or is entitled to such fluctuating returns and it is able to influence these returns by exercising its control over the company. Mutual shareholdings of Group companies have been eliminated using the acquisition cost model. Acquisition costs include transferred assets at fair value, generated or assumed liabilities and equity-based instruments that are issued. Acquired subsidiaries are consolidated from the moment that the Group gains control over them and divested subsidiaries are consolidated until this control ends. All internal Group business transactions, receivables, liabilities, unrealised profits and internal profit distribution are eliminated when preparing the consolidated financial statements. Unrealised losses are not eliminated if the loss results from impairment. The distribution of profits for the financial period to the parent company’s owners and minority interest-holders is presented in the income statement, and the minority interest-holders’ share of equity is presented as a separate item in the balance sheet under equity. The minority interest-holders’ share of accumulated losses is recognised in the consolidated financial statements up to the amount of the investment. The Group has no associated companies or minority shareholders. Subsidiaries Subsidiaries are consolidated into the financial statements from the moment that the Group gains control over them until this control ends. The consolidated financial state- ments have been prepared using the acquisition-cost method. The Group’s share of assets, liabilities and contingent liabilities on the date of acquisition is recognised at fair value and the amount in excess of the fair-value acquisition cost is recognised as goodwill. If the acquisition cost of a subsidiary is less than the value of the net assets on the date of acquisition, the difference is recognised in the income statement. Internal Group business transactions, receivables, liabilities and unrealised profits from internal sales are eliminated in the consolidated financial statements. Unrealised losses are also eliminated unless an internal business transaction demonstrates that an asset has become impaired. The share of a subsidiary owned by minority interest-holders is presented in the consolidated balance sheet under equity, separately from shareholders’ equity. The accounting principles applied by subsidiaries have been adapted to correspond to the Group’s principles. On 31 December 2024 the company had no goodwill on its balance sheet. Translating items denominated in foreign currencies The profit and financial position of the Group’s units are measured in the currency of the main operating region of the unit in question. The consolidated financial statements are presented in euro, which is the functional and presentation currency of the Group’s parent company. Foreign currency business transactions are recorded in the functional currency at the exchange rate on the date of transaction. Monetary receivables and liabilities are translated at the exchange rate on the closing date of the financial period. Non-monetary foreign currency items have been translated into the functional currency at the exchange rates on the transaction date. Any exchange differences arising from translation are recognised in the income statement. Any exchange differences arising from the translation of accounts 35BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Business segments Biohit’s product portfolio consists of diagnostic tests, analysis systems, products that bind carcinogenic acetaldehyde into harmless compounds and monoclonal antibodies. The company classifies its entire product and service portfolio into one segment. Segment information is provided to the most senior operative decision-making body as part of internal reporting in a consistent manner. The reports that the most senior decision-making body monitors do not differ substantially from the reports presented in the group’s income statement and balance sheet. The Group’s Management Team is the most senior operative decision-making body. It is responsible for allocating resources to business segments. Revenue recognition The Group applies IFRS 15 Revenue from contracts with customers. The new standard establishes a five-step model for recognizing revenue from contracts with customers. Revenue is recognised on a gross basis, as Biohit acts as a principal towards customers. The transaction price is estimated separately for each contract at the amount of consideration that Biohit is expected to be entitled to in exchange of the goods or services transferred. The determination of the transaction price is normally straightforward, as Biohit’s con- tracts include no variable consideration such as retrospective discounts. Biohit applies the practical expedient and therefore does not recognise a significant financing component, i.e. does not adjust the promised consideration for time value of money when the time between the delivery of the promised good or service to the customer and the payment by the customer is less than one year. Revenue for each good or royalty from license-based business is recognised as a distinct performance obligation, as those are separately identifiable and Biohit’s customers can benefit from them individually. Revenue from goods sold is recognised at a point of time when control over them is transferred to the customer in accordance with the commercial terms of delivery, i.e. when the goods leave the warehouse in accordance with “ex-works”. Biohit also has licensing agreement, in which Biohit fulfills the performance obligation at one point in time. In that case, the sales revenue is recorded in full when the license is granted to the customer. The consideration is then variable up to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the uncertainty is subsequently resolved. Biohit values the variable con- sideration as an expected value that corresponds to the sum of the amounts weighted by probabilities. The variable amount of money is based on the management’s estimate of the annual payments that Biohit will likely receive. Biohit has a contractual obligation to withdraw defective goods from the market and replace them with new products without a separate compensation. Costs relating to the withdrawal are accounted for in accordance with IAS 37 Provisions, contingent liabilities and contingent assets. The amount of costs relating to goods withdrawn has not been material in Biohit’s business. Biohit recognises a contract asset when the right to a consideration is not unconditional. The receivable and accounts payable within the Group are recognised as financial items, also corresponding external items are treated as financial items. The income statements of foreign subsidiaries have been translated into euro at the average exchange rate for the financial period and the balance sheets have been translated at the exchange rate on the closing date of the financial period. The exchange difference resulting from translating income statement items using the average exchange rate and balance sheet items at the exchange rate on the closing date of the financial period has been recognised as a separate item under translation differences in equity. Exchange differences from monetary items calculated as net investments made in foreign subsidiaries are recognised as translation differences. 36BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Property, plant and equipment Property, plant and equipment are recognised at original acquisition cost, less accumulated depreciation and impairments. Acquisition cost includes the direct costs arising from acquisition. Costs that arise subsequently are included in the book value of the asset or recognised as separate assets only if it is likely that the future financial benefit associated with the asset will benefit the Group and the acquisition cost of the asset can be reliably determined. Other repair and maintenance costs are recognised through profit or loss in the period during which they have materialised. Straight-line depreciation is applied to assets according to the estimated useful life. No depreciation is made on land. The estimated useful lives are as follows: Machinery and equipment: 3–10 years The residual value and the useful life of assets are checked in every financial statement and, if necessary, adjusted to represent changes that have occurred in the expectations of financial benefit. Sales gains and losses accumulated from the disposal or transfer of tangible fixed assets are included in other operating income or expenses. asset is recognised within sales receivables when the right to a consideration is uncon- ditional, i.e. when only passage of time is required before payment of the consideration is due. A contract liability is recognised for payments received from customers for which no goods or services have yet been delivered by Biohit. Biohit has not incurred any significant costs to obtain the contracts, such as sales commis- sions. Biohit applies a practical expedient and recognises the incremental costs of obtaining a contract as an expense as incurred, if the amortisation period for the related asset would be one year or less. Biohit applies the practical expedient and does not disclose information about partly or completely unsatisfied performance obligations that relate to contracts with a duration one year or less. Biohit’s contracts with a duration of more than one year consist of distri- bution agreements that are framework contracts by nature and do not meet the criteria in IFRS 15 for the existence of a contract without specific purchase orders for quantities to be delivered. In this case, future sales relating to distribution agreements are not accounted for as unsatisfied performance obligations, and no transaction price is allocated to them. Public grants Public grants are recognized according to the IAS20-standard. Public grants are recog- nized as fair value when it reasonably certain that they will be granted and that the company fulfils the requirements for them. Public grants are accrued and recognised in the profit and loss statement for the financial period in which the right to receive the grant is fulfilled based on actual costs. Product development grants e.g., Business Finland, are recognizes as Other operating income. Cost support e.g. The State Treasury’s business cost support is recognized as Other operating costs deductibles. Estimates made relating to revenue recognition Biohit uses management’s estimate when recognizing sales revenue from customer con- tracts that include a variable amount of money. The variable amount of money is based on the management’s estimate of the annual payments that Biohit will likely receive. The management uses the customer’s previous payment behavior as the basis for the estimate. 37BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Intangible assets Research and development expenses Research expenditure is recognised as an expense in the income statement. Develop- ment costs are capitalised on the balance sheet in accordance with IAS38 when Biohit can demonstrate that the development of the product is considered to meet the following criteria: 1) The product is considered to bring financial benefit beyond its useful life, 2) The product has already been developed, and Biohit intends to sell the product beyond its useful life, 3) The intangible asset will produce a probable economic benefit, 4) Biohit has adequate and available resources to complete the asset, 5) Biohit is able to determine the costs incurred during the development phase of the asset. Development expenditure that has previously been recognized as an expense cannot be capitalised at a later date. Depre- ciation is booked for an asset from the time it is ready for use. In 2024, the costs related to six development projects have been capitalised. Other intangible assets Intangible assets are only entered in the balance sheet if the acquisition cost of the asset can be reliably determined and if it is likely that the expected financial benefit from the asset will benefit the company. Other intangible assets with a limited useful life are entered in the balance sheet at original acquisition cost, and costs are booked in the income state- ment based on straight-line depreciation over the course of the known or estimated useful life of the asset. The Group has no intangible assets with indefinite useful lives. The depreciation periods are as follows: Patents: 4–10 years IT software: 3 years Other intangible assets: 5–10 years Leases Biohit Group applies the IFRS 16 Leases standard. According to IFRS 16, almost all leases are recognised on the balance sheet by lessee as the distinction between operating and finance leases is removed. Under the new standard, lessee recognises a right-of-use asset (the right to use the leased item) and a lease liability to pay rentals. The standard includes optional recognition exemp- tions for short-term leases (12 months or less) and leases for which the underlying asset is of low value. Biohit has decided to apply the optional exemptions and recognises these expenses as straight-line basis over the period of the lease. According to IFRS 16 standard, the lessee’s lease period is the period during which the lease cannot be terminated. Also, a potential extension or termination option should be considered, if the use of such option is estimated to be reasonably certain. The lease term for ongoing contracts is based on estimate by Biohit’s management. Management regularly estimates the length of those leases. The lessee should value the lease agreement by discounting the future lease payments to the present value at the inception of the contract. The internal interest rate implicit in the lease is not easily available which is why the future minimum lease payments are discounted using Biohit’s incremental borrowing rate. According to the standard, the incre- mental borrowing rate is defined as the interest that the lessee would have to pay when borrowing for a similar term and with similar security to obtain an asset of an equivalent value to the right-of-use asset in similar economic environment. Biohit has determined the incremental borrowing rate for leases based on the debt based financing offers received from the 3rd party. Biohit has applied a single discount rate to a portfolio of leases with similar characteristics. 38BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS overheads and fixed overheads at a normal level of operations. The net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs for completing the product and costs related to sales Pension obligations In Group companies, pension cover is arranged in accordance with the pension legislation and practices of the country in question. The pension arrangements are defined-contribution plans. The payments related to defined-contribution pension plans are recognised as costs in the financial period in which they arise. Share-based payments In the future the Group might have incentive plans where payments are made in the form of equity instruments. The benefits granted under the plans are recognised at fair value on the date on which they were granted and entered as costs evenly throughout the period during which they were earned. The effect of the plans on profit or loss is presented under costs of employee benefits. The cost determined on the date on which the options were granted is based on the Group’s estimate of the number of options for which rights are presumed to arise at the end of the incentive-earning period. The Group updates the presumption of the final number of options on the final day of every reporting period. Changes in estimates are treated through profit or loss. The fair value of option plans is defined on the basis of the Black- Scholes option pricing model. Terms that are not market-based, such as profitability and specific growth targets, are not taken into consideration when determining the fair value of options. Instead, they affect the estimate of the final number of options. Impairments of tangible and intangible assets On the closing day of each financial period, the Group assesses whether there are indi- cations of impairment in the value of a particular asset. If there are such indications, the recoverable amount from the said asset is estimated. Additionally, the recoverable amount is estimated annually for goodwill, regardless of whether there is any indication of impair- ment. The need for impairment is reviewed at the level of cash-generating units, that is, the lowest unit level that is largely independent of other units, and whose cash flow can be separated from other cash flows. The discount rate used is the interest rate that is deter- mined before taxes and that describes the market’s view of the time value of money and the risks incorporated in the tested asset. The recoverable amount is the asset’s fair value, less costs arising from transfer or a higher utility value. Value in use is the estimated future net cash flow from the asset or cash-generating unit, which is discounted to its present value. Impairment loss is recog- nised if the book value of the asset is higher than the recoverable amount. Impairment loss is recognised immediately in the income statement. If the impairment loss is allocated to a cash-generating unit, it is first allocated to reduce the goodwill of the cash-generating unit and then to reduce the other assets of the unit pro rata. The impairment loss is can- celled if there is a change in the conditions and the recoverable amount from the asset has changed since the impairment loss was booked. However, the impairment loss may not be reversed in excess of what the asset’s book value would be without the recognition of the impairment loss. Impairment losses recognised for goodwill are never reversed. Inventories Inventories are measured at acquisition cost or net realisable value, whichever is lower. The acquisition cost is determined using the weighted average price method. The acqui- sition cost for finished and unfinished products consists of raw materials, direct labour costs, other direct costs, and the appropriate share of manufacturing-related variable 39BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Deferred tax is calculated using the tax rates enacted by the balance sheet date. Deferred tax assets are recognised to the amount for which it is likely that taxable profit will be generated in the future against which the temporary difference can be utilised. Financial Assets Group’s financial assets are classified in the following measurement categories: amortized cost, fair value through other comprehensive income and fair value through profit or loss. The classification depends on used business model for managing the financial assets and the contractual terms of the cash flows. Assets are classified as current assets, except for maturities over 12 months after balance sheet date, which are classified as non-current assets. Purchases and sales of financial assets are recognised on the settlement date. Financial assets are derecognised when the rights to receive cash flows from the invest- ments have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. Amortised cost category consists of cash and cash equivalents, trade receivables and loan receivables where the business model is to hold the asset to collect the contractual cash flows. Financial assets recognised at amortized cost are valued using the effective interest method. Assets at fair value through profit or loss consist of interest or equity funds or invest- ments into listed bonds. All gains or losses of fair value changes investments in the cate- gory is included in financial income and expenses. Assets at fair value fair value through other comprehensive income consist of equity investments to unlisted Genetic Analysis AS shares. Dividends from equity investments are recognised at profit and loss statement. Genetic Analysis AS was listed on the Swedish Spotlight Stock Market on October 1, 2021. Despite the Swedish trading location, Genetic Analysis AS’s share price is quoted in Norwegian kroner. Provisions A provision is entered when the Group has, due to a past event, a legal or factual obliga- tion, and the obligation is likely to materialise and the sum of the obligation can be reliably estimated. The amount to be recognised as a provision corresponds to the best estimate of the costs required to meet existing obligations on the closing date of the financial period. If the time value of money has a material impact, the amount of the provision is recognised as the present value of anticipated expenses. Taxes based on taxable income for the period and deferred taxes The tax expense in the income statement consists of the current tax expense and deferred tax. The amount of tax based on the taxable profit for the period is calculated from the taxable profit based on the applicable tax rate in each country. The tax is adjusted by possible taxes related to previous periods. Deferred taxes are calculated from all tempo- rary differences between the book value and tax base. The biggest temporary differences arise from the depreciation of property, plant and equipment, deferred tax assets and internal margins on inventory. No deferred tax is recognised for non-deductible goodwill impairment or for the undis- tributed profits of subsidiaries if the temporary difference is not likely to dissolve in the foreseeable future. When option rights are exercised, the assets obtained from share subscriptions are entered into the invested unrestricted equity fund in accordance with the terms of the plan. 40BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Concept of operating profit and loss IAS 1 Presentation of Financial Statements does not define the concept of operating profit. The Group has defined it as follows: operating profit or loss is a net total that can be calculated by adding other operating income to net sales, subtracting purchase expenses adjusted by the change in the stock of finished and unfinished products as well as expenses caused by production for own use, subtracting expenses from employee benefits, depreciation and potential impairment losses, as well as other operating expenses. All other items, including discontinued operations, are presented beneath operating profit or loss. Exchange differences and changes in the fair value of derivatives are included in operating profit or loss pro- viding they arise from business-related items. Otherwise, they are recognised as financial items. Exchange differences related to the Group’s internal receivables and liabilities are recognised as financial items. Accounting policies calling for judgements by the management and key sources of estimation uncertainty When preparing the financial statements, the management must make assessments and assumptions concerning the future, and the outcome may deviate considerably from the original assessments and assumptions. In addition, discretion must be used in applying the accounting policies. Although the estimates are based on the most recent information available, the realised values may differ from these estimates. The most important areas in which estimates, and discretion are used are described below. Revenue recognition of license agreements If the consideration of the license agreements includes a variable amount of money, Biohit values the amount of money as an expected value, which corresponds to the sum of the amounts of money weighted by probabilities. The variable amount of money is based on the management’s estimate of the annual payments that Biohit will likely receive. Financial Liabilities Group’s financial liabilities are classified as amortized cost and measured at fair value net of transaction cost at settlement date. Financial liabilities are subsequently measured at amortized cost using the effective interest method. Financial liabilities at amortized cost consist of loans from financial institutions. Financial liabilities are included in non-current liabilities, except for items with maturities less than 12 months after the balance sheet date, which are included in current liabilities. A financial liability is derecognised when the related obligation is discharged, cancelled or expires. The group does not have any derivative liabilities. Currently, financial liabilities consist of accounts payable. Impairment The credit loss is recognised based on individual assessment of receivable. The simplified expected credit loss model is applied for trade receivables. The impairment process is based on historical credit loss experience combined with current conditions and forward looking macroeconomic analysis. Realised loss levels are adjusted based on history, so that they represent the current and future information and macroeconomic factors, that influence the customers ability to make the payments for receivables. Financial items based on trade receivables and contracts are recognised off the balance sheet as final credit loss., when it is not plausible to expect to receive payment e.g. in the process of bankruptcy. The impairment or credit loss is recognised in the consolidated statement of income within other expenses. Maturity analyses for trade receivables, movement in allowance account and general pro- visioning matrix is presented at note 2.26 under Credit and counterparty risk. The Other financial assets at amortized cost consist of cash at banks. 41BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Measurement of assets at fair value fair value through other comprehensive income where senior managers’ judgement is required After being listed on 1 October 2021 the Genetic Analysis AS share price is based on the stock quote, and as follows does not require the senior managers’ judgement anymore. Before being listed, the input data for the valuation of Genetic Analysis AS consisted of transactions involving the company’s shares on market terms between third parties. If there were no third-party transactions the assessment was based on the discounted cash- flow model based on the budgets by the management of Genetic Analysis AS. Application of new or amended IFRS standards and IFRIC interpretations Biohit will begin applying new or amended IFRS standards and interpretations as of the date on which they enter into force or when they are approved for adoption in the EU. The consolidated financial statements were prepared in compliance with the same principles used in 2023. No significant new standards or interpretations were introduced in 2024. Biohit has not prematurely applied such new or changed standards or interpretations that have been published but have not come into force. Biohit will start applying the standard IFRS 18 in the financial period starting on January 1, 2027 and retroactively in comparative data. Biohit has not yet started analyzing the effects of the standard. Impairment testing The Group conducts impairment tests as required on intangible assets. It also assesses any indication of impairment in accordance with the aforementioned accounting policies. The recoverable amounts of cash-generating units are measured on the basis of value-in- use calculations. Preparing these calculations requires the use of estimates. Deferred tax assets Deferred tax assets for unused tax losses and temporary differences in regard to recognised deferred tax assets are estimated by the Group at least once per year to determine the like- lihood of the company in question generating sufficient taxable income before the unused tax losses expire. Other liabilities Biohit uses judgement when evaluating the size of the expense provision for the subsidiary Biohit Healthcare S.r.l. The expense provision is based on the compensation demanded by the Italian state from suppliers of medical equipment for the budget overruns of the Italian administrative regions in 2015-19. There is uncertainty about the size of the actual cost effect, but since the counterparty is the Italian state, the provision has been recorded in full under other liabilities and to reduce turnover. 42BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS 2.3 Revenue and segment information The company’s product portfolio consists of diagnostic tests, products that bind acetalde- hyde and monoclonal antibodies. The company classifies its entire product portfolio into one segment. In licencing agreements, Biohit transfers licensed immaterial rights to a customer, and the customer both produces and sells the products. Licencing agreements cover both diagnostic products and Acetium products. Biohit also has contracts that include both a distribution agreement and a licensing agree- ment. In this case, Biohit sells to the customer finished products and raw materials needed for production and, in addition, receives a royalty fee based on the sale of the product. Revenue from the sale of finished products, raw materials and royalty income from licences are recognised as separate performance obligations. In the case of the licensing agree- ment, Biohit fulfills the performance obligation at one point in time. In that case, the sales revenue is recorded in full when the licence is granted to the customer. The consideration is then variable up to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the uncertainty is sub- sequently resolved. Biohit values the variable consideration as an expected value that corresponds to the sum of the amounts weighted by probabilities. The variable amount of money is based on the management’s estimate of the annual payments that Biohit will likely receive. Sales to one of the most important customers is presented in note 2.27 (Related party transactions). Revenue by Market Area € 1,000 2024 2023 Finland 207 211 Europe, Other 5,743 5,700 North and South America 300 324 Asia 5,173 4,565 Other Countries 2,860 2,276 Revenue from contracts with customers total 14,283 13,076 The majority of Biohit’s revenue is generated from distributor agreements for diagnostic products. Biohit’s customers, i.e. the distributors, buy and resell the products. Biohit has no post-sales rights or obligations relating to the control over the products, except for a right of return relating to some distribution agreements. The goods that are sold include several various tests for diagnostics of diseases in the gastrointestinal tract, such as celiac quick test, lactose intolerance test, Vitamin D test, GastroPanel ® test for the first-line diag- nosis of dyspepsia measured on simple blood test. Furthermore, the product portfolio includes Acetium ® lozenge and Acetium ® capsule, which are acetaldehyde-binding products sold under the trademark Acetium. Contract assets and liabilities: Biohit recognises revenue at a point of time when goods are delivered. The payment terms in Biohit’s contracts with customers vary from a payment to be made one month in advance to payment in 60 days. 43BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS € 1,000 31 Dec 2024 31 Dec 2023Contract Assets 4,200 2,400Trade receivables 1,724 1,257Contract assets and receivables total 5,924 3,657 € 1,000 31 Dec 2024 31 Dec 2023Contract liabilities 1 4Contract liabilities total 1 4 The items included in contract liabilities at the beginning of the period have been recognised as revenue during the financial year. 2.6 Materials and services € 1,000 2024 2023Materials, supplies and goods 3,521 3,137External manufacturing services 1,652 1,565Total 5,174 4,702 2.7 Expenses arising from employment benefits € 1,000 2024 2023Salaries 3,512 3,266Pension expenses – defined-contribution plans 522 515Options and share bonuses realised and paid in shares 127 209Other personnel expenses 94 96Salaries capitalised to non-current assets -256 -87Total 4,000 4,086 2.4 Acquired businesses No new businesses were acquired in the 2024 and 2023 financial periods. 2.5 Other operating income € 1,000 2024 2023Grants 78 277Others 1 2Total 79 279 A contract liability is recognised for payments received where the goods have not yet been delivered. This is the case, among others, with countries outside Europe, where as a result of a higher credit risk relating to customers, an advance payment is received, on the average, one month before the delivery of the goods. The timing difference between the receipt of the advance payment by Biohit and the delivery of the products does not exceed one year. 44BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS 2.10 Depreciation and impairment € 1,000 2024 2023Intangible assets 13 37Right-of-use assets 279 256Plant and equipment49 70Total 341 364 Average number of Group employees in the financial period 2024 2023Group total 46 44 Details of the employment benefits enjoyed by senior managers are presented in note 2.27 (Related-party transactions). 2.8 Other operating expenses € 1,000 2024 2023Travel expenses and other personnel expenses 348 262Rents and maintenance expenses 138 122Sales and marketing expenses552 544Other external services 1,261 1,244Other operating expenses 221 297Total 2,520 2,468 Other operating expenses include research and development expenses of EUR 496 thousand (EUR 535 thousand). 2.9 Auditor´s fees € 1,000 2024 2023Companies belonging to the PricewaterhouseCoopers chainAuditors' fees 166 124Assignments according Auditing Act 1.1,2 § 20 3Tax service - -Other services10 -Total fees paid to the auditor 196 127 45BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Reconciliation of tax expenses on the income statement€ 1,0002024 2023Profit before taxes 2,868 2,195Consolidated income taxes at Group's domestic tax rate (20%) -574 -439Impact of different tax rates of foreign subsidiaries -6 -26Non-deductible expenses -137 -10Tax-exempt income 50 78Non-creditable withholding taxes -265 -208Effect of deferred tax assets not recognised 632 266Other items - -6Taxes on the income statement -299 -344 The group has depreciation expenses that have been entered in accounting but not in taxation. Of these, no deferred tax assets have been recorded. Direct taxes€ 1,0002024 2023Tax based on taxable income for the financial period -33 -132Withholding tax liabilities-265 -208Change in deferred taxes -2 -4Total Direct taxes -299 -344 2.11 Financial income and expenses € 1,000 2024 2023Financial incomeExchange rate gains from financial assets and liabilities 6 32Net profit on investments recognised at fair value throughprofit or loss 66 90Other financial income 561 408Total 633 530 Financial expensesNet loss on investments recognised at fair value through profit or loss -20 -27Exchange rate losses from financial assets and liabilities -6 -1Other financial expenses -295 -131Total -322 -159Total financial income and expenses 311 371 Year 2024: other financial expenses EUR 295 thousand (EUR 131 thousand) mainly consists of impairment of investments. 2.12 Income taxes 46BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS 2.14 Intangible assets 2024 2023Profit for the period attributable to the owners of the parent company (EUR thousand) 2,568 1,851Average number of shares, undiluted 15,161,374 15,097,153Average number of shares, diluted 15,215,816 15,127 361Earnings per share, undiluted (EUR) 0.17 0.12Earnings per share, diluted (EUR) 0.17 0.12 2.13 Earnings per share Undiluted earnings per share are calculated by dividing the profit attributable to shareholders of the parent company in the financial period by the weighted average number of shares in circulation during the financial period. 2024 2023Intangible Intangible € 1,000rights Total€ 1,000rights TotalAcquisition cost 1 January 2024 1,583 1,583Acquisition cost 1 January 2023 8,997 8,997Decreases from previous years -1,394 -1,394Decreases from previous years -7,592 -7,592Increases 322 322Increases178 178Acquisition cost 31 December 2024511 511Acquisition cost 31 December 2023 1,583 1,583Accumulated depreciation and impairment 1 January 2024 -1,400 -1,400Accumulated depreciation and impairment 1 January 2023 -8,955 -8,955Accumulated depreciation on decreases 1,394 1,394Accumulated depreciation on decreases 7,592 7,592Depreciation -13 -13Depreciation -37 -37Accumulated depreciation and impairment 31 December 2024 -19 -19Accumulated depreciation and impairment 31 December 2023 -1,400 -1,400Book value 1 January 2024 183 183Book value 1 January 2023 41 41Book value 31 December 2024 492 492Book value 31 December 2023 183 183 Intangible rights mainly consist of capitalised R&D costs of internally generated products. The book value for these was EUR 480 thousand (EUR 181 thousand) at the end of the reporting period. 47BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS 2.15 Tangible assets 2024Right-of-use Plant and € 1,000assetsequipment TotalAcquisition cost 1 January 2024 1,850 1,346 3,196Decreases from previous years - -34 -34Exchange rate differences - 2 2Increases 184 79 263Acquisition cost 31 December 20242,033 1,394 3,427Accumulated depreciation and impairment 1 January 2024 -1,223 -1,207 -2,430Accumulated depreciation on decreases - 34 34Exchange rate differences - -2 -2Depreciation -279 -49 -328Accumulated depreciation and impairment 31 December 2024 -1,503 -1,223 -2,726Book value 1 January 2024 626 140 766Book value 31 December 2024 531 171 701 2023Right-of-use Plant and € 1,000assetsequipment TotalAcquisition cost 1 January 2023 1,820 1,777 3,598Decreases from previous years - -501 -501Increases 81 70 151Decreases -52 - -52Acquisition cost 31 December 20231,850 1,346 3,196Accumulated depreciation and impairment 1 January 2023 -967 -1,637 -2,604Accumulated depreciation on decreases - 501 501Depreciation -256 -70 -327Accumulated depreciation and impairment 31 December 2023 -1,223 -1,207 -2,430Book value 1 January 2023 853 140 993Book value 31 December 2023 626 140 766 Right-of-use assets€ 1,000 31 Dec 2024 31 Dec 2023Buildings 383 493Equipment 0 3Vehicles148 130Total 531 626Depreciation charge of right-of-use assets € 1,000 31 Dec 2024 31 Dec 2023Buildings 191 185Equipment 3 3Vehicles86 69Total 279 256Amounts recognised in the income statement€ 1,000 31 Dec 2024 31 Dec 2023Depreciation of right-of-use assets 279 256Expenses relating to short-term leases and leases of low value assets 1 1Interest expenses on lease liabilities 20 27Total 301 284Amounts presented in the consolidated cash flow statement€ 1,000 31 Dec 2024 31 Dec 2023Payment of principal portion of lease liabilities 298 267Interest expenses on lease liabilities 20 27Total 319 294 2.16 Leases Below stated information is based on the leasing contracts where the Biohit Group is the lessee. The maturity analysis of lease liabilities is presented in note 2.26 (Management of financing risks). 48BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS The Group leases mainly company cars and premises. Rental contracts are typically made for fixed periods of 12 months to 5 years but may have extension options. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: fixed payments variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the commencement date the exercise price of a purchase option if the group is reasonably certain to exercise that option lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The Group is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset. Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The standard includes optional recognition exemptions for short-term leases (12 months or less) and leases for which the underlying asset is of low value. Biohit has decided to apply the optional exemptions and recognises these expenses as straight-line basis over the period of the lease. According to IFRS 16 standard, the lessee’s lease period is the period during which the lease cannot be terminated. Also, a potential extension or termination option should be considered, if the use of such option is estimated to be reasonably certain. The lease term for ongoing contracts is based on estimate by Biohit’s management. Management regularly estimates the length of those leases. 49BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Fair value through Fair value The Group categorised its financial assets and liabilitiesAmortised cost profit and loss through OCI into the following categories on 31 December 2023:€ 1,000€ 1,000€ 1,000 Hierarchical levelNon-current assetsOther non-current financial assets 118Level 2Current assetsFund shares - 11 - Level 1Investment to Genetic Analysis AS - - 108 Level 1Bonds and fund shares - 2,924 - Level 2Current deposits 500 - -Trade receivables 1,257 - -Contract assets 2,400 - -Other receivables 472 - -Cash and cash equivalents 3,271 - - 2.17 Financial assets and liabilities by categoryFair value through Fair value The Group categorised its financial assets and liabilities Amortised cost profit and loss through OCI into the following categories on 31 December 2024:€ 1,000€ 1,000€ 1,000 Hierarchical levelNon-current assetsContract assets 3,200Other non-current financial assets 139Level 2Current assetsFund shares - 6 - Level 1Investment to Genetic Analysis AS - - 62 Level 1Bonds and fund shares - 2,897 - Level 2Current deposits - - -Trade receivables 1,724 - -Contract assets 1,000 - -Other receivables 490 - -Cash and cash equivalents 3,745 - - 50BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS The company has classified the hierarchies of financial assets according to the availability of data on market terms and other price data. The fair values on level 1 of the hierarchy are based on the quoted (unadjusted) prices of identical assets or liabilities on active markets. The group has mainly used valuations provided by its asset management partner as a source of price data for determining the fair value of these instruments, and the company has verified that the price data represents genuine, frequent market transactions involving the instruments in question. In significant part, the fair values of level 2 instruments are based on other input data than the quoted prices included in level 1, although this data can be obtained for the assets or liabilities in question either directly (as a price) or indirectly (as a derivative of the price). The Group uses generally accepted valuation models to determine the fair values of these instruments, and the input data for these models are based in significant part on observable market data. The level in the fair value hierarchy at which a certain item measured at fair value is classified overall is determined on the basis of the significant input data on the lowest level with regard to the entire item measured at fair value. The significance of input data is evaluated in its entirety in relation to the item valued at fair value. The original book value of other receivables corresponds to their fair value because the effect of discounting is negligible in view of the maturity of the receivables. Financial liabilities include trade payables EUR 679 thousand (EUR 465 thousand). 51BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS € 1,000 Lease liabilities Long-term liabilities Total 1 January 2023 943 8 951 New borrowings - - 0 Repayment of borrowings -267 - -267 New leases 60 - 60 Exchange rate differences 0 - 0 Revaluations 20 -1 20 Other changes -55 - -55 31 December 2023 702 7 709 New borrowings - - 0 Repayment of borrowings -298 - -298 New leases 168 - 168 Exchange rate differences 0 - 0 Revaluations 16 -1 15 Other changes - - 0 31 December 2024 587 6 594 2.18 Net liabilities € 1,000 2024 2023 Cash and cash equivalents 3,745 3,271 Other investments 2,903 3,435 Long-term liabilities -6 -7 Lease liabilities -587 -702 Net liabilities 6,054 5,997 Liquid assets and other financial assets 6,648 6,706 Gross liabilities - fixed interest -594 -709 Net liabilities 6,054 5,997 Other investments are short-term money market investments that are traded on active markets and that are measured at fair value through profit and loss. In addition, other investments include short-term deposits, which are valued at amortised cost. 52BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS 2.19 Deferred taxes Deferred tax assetsRecognised through Recognised under other items of € 1,000 1 Jan 2024profit and losscomprehensive income Other adjustments 31 Dec 2024Internal inventory margin 7 2 - - 9Other items 13 -4 - 0 9Total 20 -2 - 0 18Deferred tax liabilitiesRecognised through Recognised under other items of € 1,0001 Jan 2024profit and losscomprehensive income Other adjustments 31 Dec 2024Capitalisation of tangible assets 2 - - 0 2Financial securities measured via the fair value reserve 0 - - - 0Total 2 - - 0 2 Deferred tax assetsRecognised through Recognised under other items of € 1,000 1 Jan 2023profit and losscomprehensive income Other adjustments 31 Dec 2023Internal inventory margin 7 0 - - 7Other items16 -4-2 13Total22 -4-2 20Deferred tax liabilitiesRecognised through Recognised under other items of € 1,000 1 Jan 2023profit and losscomprehensive income Other adjustments 31 Dec 2023Capitalisation of tangible assets 2 --0 2Financial securities measured via the fair value reserve 0 - -- 0Total 2 - - 0 2 The Group has tax-deductible losses of EUR17.0 million for the periods from 2014 to 2022 for which no deferred tax assets have been recognised. In addition the group has entered R&D costs for EUR 4.7 million in accounting but not in tax deduction. No deferred tax assets has been recognised for these R&D costs. 53BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Tax losses carried forward€ 1,000Expiring year Losses2024 4,2412025 3,3952026 2,4212027 1,68420282,2472029 29620302,188203129920322882033-2034- 2.20 Inventories € 1,000 2024 2023Materials and supplies 307 433Work in progress 36 5Finished products/goods 686 451Total inventories 1,029 890 The amount of inventories recognised as an expense during the reporting period was EUR 67 thousand (EUR 151 thousand). 2.21 Trade and other receivables The most substantial item included in the accrued income is cost support receivables of EUR 162 thousand (EUR 180 thousand). The age analysis of the trade receivables is presented in note 2.26 (Management of financing risks). 2.22 Notes related to shareholder´s equity Biohit Oyj’s share capital is EUR2,350,350.81 (EUR2,350,350.81) and there are 15,181,593 (15,113,593) shares, of which 2,975,500 (2,975,500) belong to Series A and 12,206,093 (12,138,093) belong to Series B. Series B is listed on the stock exchange. The shares have no nominal value. Shares in Series A and B differ from each other in that each Series A share entitles its holder to twenty (20) votes at general meetings, while each Series B share carries one (1) vote. The dividend paid for Series B shares is, however, two (2) per cent of the nominal value higher than that paid for Series A shares. When this regulation is applied, the nominal value of the shares is taken to be EUR 0.17, which was the nominal value of the company’s shares when it decided to discontinue using nominal values for shares. The shareholders’ equity has been paid in full. The table for tax losses carried forward is presented below. Short-term receivables€ 1,000 2024 2023Trade receivables 1,724 1,257Contract assets 1,000 2,400Accrued income 471 452Other receivables 19 20Total 3,213 4,129 Long-term receivables€ 1,000 2024 2023Contract assets 3,200 -Total 3,200 - 54BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Description of shareholders’ equity funds: The translation differences reserve includes the translation differences arising when the financial statements of foreign subsidiaries and joint ventures are translated into euros. The invested unrestricted equity fund includes other investments similar to shareholders’ equity and the subscription prices of shares insofar as no specific decision is taken to recognise these under shareholders’ equity. The fair value reserve consists of Genetic Analysis AS stocks. Dividends on equity investments are recognised in the income statement Capital management For capital management purposes Biohit defines capital as total equity and interest-bearing liabilities less cash and cash equivalents and current financial investments. The main objectives of Biohit’s capital management are to maintain a solid overall financial position and to ensure sufficient financial flexibility to implement long-term business strategy. 2.23 Share-based payment Share-based payments terms and conditions During the financial period 2021 Biohit Oyj established an option programme within the framework of the share-based incentive scheme. In accordance with the terms of the option programme, options are granted without cash payment, but a subscription price is set for the shares. The key terms and conditions of the incentive scheme are shown in the table below. Options granted during the 2021 financial period:I 2021 II 2021Types Types SchemeA, B, C, D, EA, B, C, DNature of the scheme Share options Share optionsDate of granting 7 December 2021 7 December 2021Number of instruments granted 440,000 440,000Subscription price EUR 1.00 EUR 2.00 Share price at the time of granting EUR 1.93 EUR 1.93Period of validity (years)6.24 6.24Realisation In shares In shares Options granted during the 2022 financial period:I 2022 II 2022 Types Types SchemeA, B, C, D, EA, B, C, DNature of the scheme Share options Share optionsDate of granting29 November 2022 29 November 2022Number of instruments granted 80,000 80,000Subscription price EUR 1.00 EUR 2.00 Share price at the time of granting EUR 1.76 EUR 1.76Period of validity (years)5.26 5.26Realisation In shares In shares For series I 2021 and I 2022 the share subscription is 1.3.2023-1.3.2028 and for series II 2021 and II 2022 1.3.2024-1.3.2028. The right to exercise shares requires the fulfilment of specifically determined profit objectives. If an option rights holder´s employment ends for whatever reason, they are obligated to return those option rights whose subscription period has not begun when the employment or management position ceases to the Company. 55BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Options in circulation Number of options 2024 2023In circulation at the beginning of the financial period 760,000 760,000Granted during the financial period ForfeitedExercisedExpiredOptions in circulation at the end of the financial period 760,000 760,000 Determining fair value The Group uses the Black-Scholes model to determine the fair value of its option schemes. Presumptions used to determine fair value during the 2022 financial periodScheme I 2022 II 2022Anticipated volatility 44.4% 44.4%Anticipated average period of validity of options on the issue date (years) 5.26 5.26Risk-free rate (%) 2.25% 2.25%Fair value of the instrument defined on the date of issue (EUR) 1.05 0.68 Presumptions used to determine fair value during the 2021 financial periodScheme I 2021 II 2021Anticipated volatility 36.4% 36.4%Anticipated average period of validity of options on the issue date (years) 6.24 6.24Risk-free rate (%) 0.00% 0.00%Fair value of the instrument defined on the date of issue (EUR) 1.09 0.65The amount recognised as expenses is included in note 2.7 (Expenses arising from employment benefits). 56BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS 2.24 Interest-bearing liabilities Balance sheet values of interest-bearing liabilities € 1,000 2024 2023 Long-term interest-bearing liabilities Lease liabilities 284 427 Total interest-bearing long-term liabilities 284 427 Short-term interest-bearing liabilities Lease liabilities 303 275 Total interest-bearing short-term liabilities 303 275 Total interest-bearing liabilities 587 702 2.25 Trade payables and other liabilities Long-term interest-free liabilities€ 1,000 2024 2023Other long-term liabilities 6 7Total 6 7 Short-term interest-free liabilities€ 1,000 2024 2023Trade payables 679 465Other payables 205 250Advances received 1 4Tax liabilities 424 371Accruals and deferred income 1,406 1 693Total 2,715 2,783Total interest-free liabilities 2,721 2,790 The most substantial items included in accruals and deferred income are the deferral of employment benefits EUR 749 thousand (EUR 916 thousand) and withholding tax liability EUR 410 thousand (EUR 240 thousand). Other payables include Biohit Healthcare S.r.l. cost accrual EUR 205 thousand (EUR 250 thousand). This accrual has been recognised in revenue. The Italian state is demanding ex post compensation from suppliers of medical equipment for the budget overruns of the Italian administrative regions in the years 2015–2019. Analysis of the maturities of lease liabilities is presented in note 2.26 (Management of financing risks). Covenants connected to long-term loans There are no special covenants attached to the company’s long-term financial lease liabilities. Subordinated loans The company has no subordinated loans. 57BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Analysis of the maturities of financial liabilities in 2024€ 1,000 <1 year 1-5 years >5 years TotalTrade payables 679 - - 679Lease contracts 316 289 - 605Total 995 289 - 1,284 2.26 Management of financial risks Biohit’s management of financing risks focuses on analysing and minimising the following financing risks: Exchange rate risk Exchange rate risks are associated with international business activities. When calculated using comparable currencies, Biohit’s net revenue not materially different to the reported values. Overall, exchange rate changes did not significantly affect the company’s profitability in the last financial period. The company’s sales are primarily denominated in euros and the company does not have any exchange rate hedging. Most of the Group’s trade receiv- ables and payables are in functional currency of each group company and do not involve sig- nificant transaction risk. The Group monitors the translation risk related to Biohit Health- care Ltd, but the risk is not hedged. Interest rate risk Interest rate changes have a minor effect on Biohit’s earnings. For this reason, the Group did not use any separate hedging against this risk in the financial period. Share price risk Biohit has invested EUR 0.1 million (EUR 0.1 million) in publicly listed shares. In addition, the value of the investment in stock funds is EUR 0.8 million (EUR 0.6 million). If the share prices were to increase or decrease nine percent, it would affect the company’s total income by three percent. Analysis of the maturities of financial liabilities in 2023€ 1,000 <1 year 1-5 years >5 years TotalTrade payables 465 - - 465Lease contracts 275 427 - 702Total 741 427 - 1,167 Liquidity risk Liquidity risk management aims to safeguard the Group’s finances under all circumstances. The Group’s current financial assets on the balance sheet date amounted to EUR 6.6 million (EUR 6.7 million). The company also holds shares in Genetic Analysis AS worth EUR 0.1 million (EUR 0.1 million). The aim of the investment activities related to the company’s current liquid assets is to achieve profit at very low risk of capital loss. The Group’s equity ratio was 78.6% (73.0%). The following tables provide the analysis of the maturities of financial liabilities. The figures are undiscounted, including interest payments and repayments. 58BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Commodity risk The company is not using derivatives to hedge against commodity risks because the company is not exposed to commodity risks by virtue of the nature of its business. Credit and counterparty risk The business units are responsible for the credit risks connected to their trade receivables, and they have evaluated the risk of credit losses for each customer. Biohit’s customer base primarily consists of solvent companies. As such, Biohit’s risk of credit losses cannot be considered significant. The company has not used credit insurance. The majority of customer relationships are long-term in nature and business relations are active, so the company will become aware of changes in customers’ creditworthiness at an early stage. The investment portfolio consists of direct corporate bond loans, structured products, corporate loan funds, money market funds and cash in bank accounts. Some of the products in the investment portfolio are listed, while others are not. Sufficient diversification of investments between asset categories, investment instruments and counterparties is essential. The company uses at least two partners in its investment activities. Approximately 0% of the investment portfolio is cash, low-risk money market fund investments and investment-grade investments. 70% of the investments are high-yield investments exposed to interest rate risk and unclassified investments. 30% of the investments are in equity funds. The company has assessed the credit risk assosiated with investments and funds. Investments and funds are held in solvent banks, so it is considered that they do not carry credit risk. No expected credit loss has been recognised. The maximum risk of investments and funds is their book value. On 31 December 2024, trade receivables totalled EUR 1.7 million (EUR 1.3 million). The maximum amount of credit risk is the book value of the trade receivables. 59BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Age distribution of trade receivablesImpairment Impairment € 1,000 2024loss Net 2024 2023loss Net 2023Not yet at maturity 1,001 -1 999 613 -1 613Less than 30 days overdue 274 -1 273 115 0 11530–60 days overdue 79 -4 76 348 -7 34161–90 days overdue 11 0 11 60 -17 42More than 90 days overdue 389 -24 365 151 -4 147Total 1,753 -30 1,724 1,287 -30 1,257 The impairment loss is calculated on the basis of historical data and is based on the payment behavior of Biohit’s customers in previous years. EUR 4 thousand was recognised in credit losses for 2024. EUR 18 thousand was recognised in credit losses for 2023. Equity ratio€ 1,000 2024 2023Total shareholders' equity12,191 9,426Balance sheet total15,502 12,920Advances received-1 -4Equity ratio78.6% 73.0% Capital structure management The equity ratio – an indicator of the company’s capital structure – is calculated by dividing the Group’s equity by the balance sheet total less advances received. The result of this calculation is then multiplied by one hundred. 60BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS 2.27 Related-party transactions Parties are considered to be related parties if one of the parties is able to exercise control or considerable influence over the other’s decision-making related to finances and business. The Group’s related parties include the members of the Board of Directors and the Group Management Team, as well as the President & CEO. In addition the Group’s related parties include Biohit HealthCare (Hefei) Co. Ltd and subsidiaries. Management remuneration 2024Salaries and other short-Post-employment and Share-based € 1,000term employment benefitstermination benefitsremunerationParent companyManagement teams 795 149 97President & CEO 305 57 17Members of the scientific advisory board 131 - - Share-based remuneration includes expenses recorded for the share-based incentive option programme. Osmo Suovaniemi has been employed by the company as a member of the scientific advisory board by the Board of Directors’ decision. The compensation, including fringe benefits, is EUR111 thousand (EUR144 thousand) In addition, the members of the scientific advisory board are paid an hourly compensation of 85 euros for work outside the advisory board. The CEO of the group has been granted a market-based long-term loan of EUR 40 thousand (EUR 20 thousand) and the management team EUR 98 thousand (EUR 97 thousand). The loan interest rate is 12-month Euribor plus 0.3%. Interest is paid annually in arrears. The loan period is five years. The borrower is entitled to pay back the loan early. Management remuneration 2023Salaries and other short-Post-employment and Share-based € 1,000term employment benefitstermination benefitsremunerationParent companyManagement teams 641 120 160President & CEO 251 47 28Members of the scientific advisory board 144 - - 61BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Subsidiaries Management remuneration 2024Salaries and other short-Post-employment and Share-based € 1,000term employment benefitstermination benefitsremunerationManaging Directors 191 18 13Management remuneration 2023Salaries and other short-Post-employment and Share-based € 1,000term employment benefitstermination benefitsremunerationManaging Directors 161 15 22 Board of Directors’ remuneration € 1,0002024 2023Parent companyVesa Silaskivi Chairman 21 8Lea Paloheimo Member 16 14Osmo Suovaniemi Member 20 14Franco Aiolfi Member - 5Liu Feng Member 11 12Kalle Härkönen Member 18 14Total board remuneration 86 65 Liu Feng is the owner of Biohit HealthCare (Hefei) Co. Ltd, and he exercises control over the company. On 31 December 2024, the members of the Board of Directors and President & CEO owned a total of 2,868,310 Series A shares and 4,276,748 Series B shares, either directly or through companies under their control. These correspond to 47.1% of all of the shares in the company and 86.0% of all of the votes. Share ownership of the management and board of directors Series A shares Series B sharesNumber of shares 2024 2023 2024 2023CEO 0 0 40,000 20,000Management group0 0 111,293 71,293Board of directors 2 868,310 2,868,310 4,236,748 4,236,748 62BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS The Group’s parent company and subsidiaries Parent company Biohit Oyj, Finland Group ownershipBiohit Healthcare Ltd, United Kingdom 100%Biohit Healthcare S.r.l., Italy 100% Sales of goods and licenses to related party companies € 1,000 2024 2023Sales of goods Biohit HealthCare (Hefei) Co. Ltd 2,066 2,104License sales Biohit HealthCare (Hefei) Co. Ltd 2,800 2,200Total 4,866 4,304 Trd rcivbls nd othr rcivbls from rltd prty compnis€ 1,000 2024 2023Trade receivables Biohit HealthCare (Hefei) Co. Ltd 0 5Contract assets Biohit HealthCare (Hefei) Co. Ltd 4,200 2,400Total 4,200 2,405 Biohit HealthCare (Hefei) Co. Ltd owns 32,7 percent of Biohit’s shares. Biohit and Biohit HealthCare (Hefei) Co. Ltd have signed a distribution agreement in 2022. Based on the agreement Hefei has pledged to Biohit 1.5 million Biohit series B shares (EUR 3.4 million) as security for its obligations under the agreement. Other operating expenses€ 1,000 2024 2023Consultancy, administration and logistics fees (companies under the control of members of the Board of Directors)Euroclone S.p.A. Franco Aiolfi 0 81Total 0 81 2.29 Events after the financial period The company’s management is not aware of material events since the balance sheet date. 2.28 Collateral and Contingent Liabilities € 1,000 2024 2023Collateral pledged on the company's own behalfGuarantees 4 4Collateral pledged on the subsidiaries behalfGuarantees- -Total collateral and contingent liabilities 4 4 63BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS IFRS IFRS IFRS IFRS IFRS 2020 2021 2022 2023 2024 Revenue EUR 1,000 7,123 9,361 10,951 13,076 14,283 Change in revenue % -29,1% 31.4% 17.0% 19.4% 9.2% Operating profit/loss EUR 1,000 -3,174 -1,480 1,129 1,825 2,557 Proportion of revenue (%) -44.6% -15.8% 10.3 % 14.0% 17.9% Profit/loss before extraordinary items and taxes EUR 1,000 -3,261 -1,305 868 2,195 2,869 Proportion of revenue (%) -45.8% -13.9% 7.9% 16.8% 20.1% Profit/loss before taxes EUR 1,000 -3,261 -1,305 601 2,915 2,868 Proportion of revenue (%) -45.8% -13.9% 5.5% 116.8% 20.1% Return on equity (%) -28.5% -18.7% 8.1% 21.9% 23.8% Return on investments (%) -25.8% -15.3% 15.3% 25.4% 22.2% Equity ratio (%) 80.8% 76.3% 68.3% 73.0% 78.6% Investments in fixed assets EUR 1,000 15 37 55 248 402 Proportion of revenue (%) 0.2.% 0.4% 0.5% 1.9% 2.8% Research and development expenditure EUR 1,000 1,043 1,219 1,237 1,173 1,107 Proportion of revenue (%) 14.6.% 13.0% 11.3% 9.0% 7.8% Balance sheet total EUR 1,000 10,777 9,613 11,015 12,920 15,502 Average number of personnel 45 44 45 44 46 3. Key Indicators 3.1 Indicators of financial trends 64BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS IFRS IFRS IFRS IFRS IFRS 2020 2021 2022 2023 2024 Earnings per share, undiluted (EUR) -0.22 -0.10 0.04 0.12 0.17 Shareholders’ equity attributable to the owners of the parent company (EUR per share) 0.58 0.49 0.50 0.62 0.80 Price-to-earnings ratio (P/E) -11.3 -18.5 39.3 15.7 13.5 Series B share price trend (EUR) - average 2.56 2.11 1.71 1.93 2.11 - low 1.90 1.82 1.05 1.57 1.80 - high 4.30 2.54 2.15 2.22 2.65 - price 31 December 2.48 1.84 1.57 1.89 2.29 Market capitalisation EUR 1,000 (presuming the same market value for Series A shares as for Series B shares) 37,313 27,609 23,622 28,489 34,766 Turnover of Series B shares (thousands) 5,518 4,213 3,751 2,681 2,767 - proportion of the total (%) 45.7% 34.9% 31.1% 22.1% 22.7% Average ex-rights adjusted number of shares 15,045,593 15,045,593 15,045,593 15,097,153 15,161,374 - taking into consideration the diluting effect of options and convertible bonds 15,045,593 15,045,593 15,065,486 15,127,361 15,215,816 Ex-rights adjusted number of shares at the end of the financial period 15,045,593 15,045,593 15,045,593 15,113,593 15,181,593 - taking into consideration the diluting effect of options and convertible bonds 15,045,593 15,045,593 15,065,486 15,143,800 15,236,036 3.2 Share-specific indicators The company has had options that had a dilutive effect in previous financial years. As the company was loss making, no dilutive effect has been presented. 65BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS 4. Shares and Shareholders 4.1 Final market values of shares Share price and exchange 2024 4.2 Shares and shareholders Shareholding by owner group 31 December 2024 Series A shares Number of owners % Number of shares % 1. Households 7 77.8 2,100,510 70.6 2. Companies 1 11.1 24,990 0.8 3. Foreign owners 1 11.1 850,000 28.6 Total number of Series A shares 9 100.0 2,975,500 100.0 Series B shares Number of owners % Number of shares % 1. Households 8,032 97.2 7,025,669 57.6 2. Financial and insurance institutions 4 0.0 16,035 0.1 3. Companies 186 2.3 789,112 6.5 4. Non-profit organisations 4 0.0 1,561 0.0 5. Public corporations 0 0.0 0 0.0 6. Nominees and foreign owners 35 0.4 4,368,124 35.8 In joint and clearing accounts 0 0.0 5,592 0.0 Total number of Series B shares 8,261 100.0 12,206,093 100.0 Total number of Series A and Series B shares 8,270 15,181,593 Total volume Closing price 66BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Series A shares Number of owners % Number of shares % 1-1,000 0 0.0 0 0.0 1,001-10,000 5 55.6 25,000 0.8 10,001-100,000 2 22.2 82,190 2.8 More than 100,001 2 22.2 2,868,310 96.4 Total number of Series A shares 9 100.0 2,975,500 100.0 Series B shares Number of owners % Number of shares % 1-1,000 7,205 87.2 1,584,503 13.0 1,001-10,000 924 11.2 2,648,540 21.7 10,001-100,000 122 1.5 3,238,718 26.5 More than 100,001 2 0.0 4,550,580 37.3 Nominee registered shares 8 0.1 178,160 1.5 In joint and clearing accounts 5,592 0.0 Total number of Series B shares 8,261 100.0 12,206,093 100.0 Total number of Series A and Series B shares 8,270 15,181,593 67BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS 10 largest owners in terms of the number of shares Series A shares Series B shares Total number of shares % Biohit Healthcare (Hefei) Co., Ltd. 850,000 4,095,415 4,945,415 32.6 Suovaniemi Osmo Antero 2,018,310 0 2,018,310 13.3 Härkönen Matti 57,200 267,965 325,165 2.1 Interlab Oy 0 130,000 130,000 0.9 Virkkala Juha Jarkko 0 96,621 96,621 0.6 Schengen Investment Oy 0 89,402 89,402 0.6 Suovaniemi Vesa kp 0 85,353 85,353 0.6 Syrjälä Pekka 0 77,650 77,650 0.5 Jaakkola Sami Juhani 0 76,600 76,600 0.5 Ruusila Ari Tapio 0 70,000 70,000 0.5 10 largest owners in terms of the number of votes Series A shares Series B shares Total number of votes % Suovaniemi Osmo 2,018,310 0 40,366,200 56.3 Biohit Healthcare (Hefei) Co.. Ltd. 850,000 4,095,415 21,095,415 29.4 Härkönen Matti 57,200 267,965 1,411,965 2.0 Oy Tech Know Ltd 24,990 43,600 543,400 0.8 Luostarinen Reijo kp 10,000 12,010 212,010 0.3 Interlab Oy 0 130,000 130,000 0.2 Virkkala Juha Jarkko 0 96,621 96,621 0.1 Schengen Investment Oy 0 89,402 89,402 0.1 Suovaniemi Vesa kp 0 85,353 85,353 0.1 Syrjälä Pekka 0 77,650 77,650 0.1 Senior management ownership 31 December 2024 On 31 December 2024, the members of the Board of Directors and President & CEO owned a total of 2,868,310 Series A shares and 4,276,748 Series B shares, either directly or through companies under their control. These correspond to 47.1% of all of the shares in the company and 86.0% of all of the votes. Largest registered shareholders 31 December 2024 68BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS 5. Formulae For Calculating Key Indicators Return on equity, % profit/loss for the financial period x 100 shareholders’ equity (average for the year) Return on investments, % profit before extraordinary items + interest and other financial expenses x 100 balance sheet total - interest-free liabilities (average for the year) Equity ratio, % shareholders’ equity on the balance sheet x 100 balance sheet total - advances received Earnings per share (EUR) profit/loss for the financial period average number of ex-rights shares during the period Shareholders’ equity per share (EUR) shareholders' equity on the balance sheet number of shares on the balance sheet date Dividend per share dividend distributed for the financial period number of shares on the balance sheet date Dividend payout ratio, % dividend per share x 100 earnings per share Effective dividend yield, % dividend per share x 100 last transaction rate in the financial period Price-to-earnings ratio (P/E) last transaction rate in the financial period earnings per share The new instructions issued by the European Securities and Markets Authority (ESMA) on Alternative Performance Measures (APMs) took effect for the 2016 financial period. In con- junction with the transition to an income statement model based on expense types, Biohit will present APMs to describe the financial development of its business and improve com- parability between different periods. APMs should not be considered substitutes for the key indicators specified in the IFRS norms for financial statements. The operational key indica- tors have been adjusted for certain measurement items that do not constitute part of ordi- nary business activities or that do not affect cash flow during the period but that affect com- parability. The items that affect comparability and the APMs used by Biohit Oyj are defined as follows: Items that affect comparability: Certain business transactions that do not constitute part of ordinary business activities or measurement items that do not affect cash flow but that have a significant effect on the income statement for the period have been adjusted for items that affect comparability. These items arise through non-recurring transactions such as:  Asset impairments  Asset sales or purchases  Expense entries for benefits in accordance with IFRS 2 In addition, Biohit Oyj presents the following APMs:  EBITDA, EUR = In addition, Biohit Oyj presents the following APMs:  Operative EBITDA (EUR) = Operating profit + depreciation, impairment - items affecting comparability 69BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Parent company´s income statement (FAS) € 1,000 Note 1 Jan - 31 Dec 2024 1 Jan - 31 Dec 2023 Revenue 6.2 10,202 9,009 Change in inventories of finished and unfinished 226 68 Other operating income 6.3 689 830 Materials and services 6.4 -3,332 -2,904 Personnel expenses 6.5 -3,048 -3,260 Other operating expenses 6.6 -2,182 -2,157 EBITDA 2,555 1,586 Depreciation and amortization 6.7 -67 -90 Operating profit/loss 2,488 1,496 Financial income and expenses 6.9 183 378 Profit/loss before appropriations and taxes 2,671 1,874 Withholding tax 6.10 -265 -208 Profit/loss for the financial period 2,407 1,666 6. Parent Company´s Financial Statements 70BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS € 1,000 Note 31 Dec 2024 31 Dec 2023 Assets Non-current assets Intangible assets 6.11 492 183 Tangible assets 6.12 161 144 Investments Shares in Group companies 6.13 31 31 Other investments 6.13 2 2 Total non-current assets 685 359 Current assets Inventories 6.15 813 686 Long-term receivables 6.16 3,338 272 Short-term receivables 6.16 2,849 3,664 Financial securities 6.17 2,950 3,775 Cash at bank and in hand 6.18 2,538 1,900 Total current assets 12,488 10,297 Total assets 13,173 10,656 € 1,000 Note 31 Dec 2024 31 Dec 2023 Liabilities and shareholders´equity Shareholders’ equity Share capital 6.19 2,350 2,350 Fair value reserve 6.19 -1,919 -1,873 Invested unrestricted equity found 6.19 4,178 4,110 Retained earnings 6.19 4,036 2,370 Profit/loss for the financial period 6.19 2,407 1,666 Total shareholders' equity 11,052 8,623 Liabilities Long-term liabilities 6.20 - - Short-term liabilities 6.22 2,121 2,032 Total liabilities 2 ,121 2,032 Total liabilities and shareholders' equity 13,173 10,656 Parent company´s balance sheet (FAS) 71BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS € 1,000 Note 2024 2023 Cash flow from operating activities: Profit/loss before appropriations and taxes 2,671 1,874 Adjustments: Planned depreciation 6.7 67 90 Unrealised exchange rate gains and losses -2 -2 Other income and expenses unconnected to payment -14 21 Financial income and expenses 6.9 -183 -378 Change in working capital: Increase (-)/decrease (+) in short-term interest-free trade receivables -2,395 -1,483 Increase (-)/decrease (+) in inventories -127 56 Increase (+)/decrease (-) in short-term interest-free liabilities -81 132 Realised exchange rate gains and losses 28 -4 Interest paid and payments on other operating financial expenses -12 -483 Income and interest received from business activities 377 515 Paid direct taxes -95 -95 Cash flow from operating activities 235 242 Parent company´s cash flow statement (FAS) * The presentation method of one bank account has been changed from the previous year in the balance sheet and in the consolidated cash flow statement. The bank account was previously presented in “Other current financial assets” and its cash flow in cash flow from investments. The bank account has been reclassified to “Cash and cash equivalents” based on a more detailed analysis. Comparison period figures have been updated to be equivalent to the reclassification in both consolidated balance sheet and cash flow statement. Bank account balance and the adjusted sum at the end of the reporting period was 86 thousand EUR (31 December 2023: 245 thousand EUR and 1 January 2023: 1,146 thousand EUR). Year 2023 restated net cash flow from investments was 902 thousand EUR lower. € 1,000 Note 2024 2023 Cash flow from investments: Investments in tangible and intangible assets -393 -246 Investments in other instruments * -1,015 -2,841 Revenue from disposal of other investments 1,520 2,425 Granted loans -21 -60 Cash flow from investments 92 -722 Cash flow from financing activities: Warrants 68 68 Cash flow from financing activities 68 68 Increase (+)/decrease (-) in cash and cash equivalents 394 -411 Cash and cash equivalents at the beginning of the period * 2,144 2,555 Cash and cash equivalents at the end of the period 6.18 2,538 2,144 72BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Notes to the parent company´s financial statement 6.1 Accounting principles When preparing the financial statements in accordance with good accounting practices, the company’s senior managers are called upon to make estimates and assumptions that affect the content of the financial statements. The outcomes may differ from these estimates. The parent company’s financial statements have been prepared in accordance with the Finnish Accounting Act. The financial statements present figures in thousands of euros based on the original values of business transactions, with the exception of financial securities, a component of current assets, which are measured at fair value. Valuation of property, plant and equipment Property, plant and equipment are recognised on the balance sheet at acquisition cost, less received contributions, planned depreciation and impairments. Planned depreciation is calculated using a straight-line model based on the useful life of the asset. The planned depreciation periods are as follows: Intangible rights 3 -10 years Other long-term expenses 5 - 10 years Plant and equipment 3 -10 years Valuation on inventories Inventories are presented in accordance with the FIFO principle at acquisition cost or replacement cost or likely sale price, whichever is lower. The acquisition cost of inven- tories includes variable costs as well as the allotted proportion of the fixed expenses of purchasing and manufacturing. Valuation of financial securities Financial securities, which belong to current assets, are measured at fair value in accor- dance with section 5.2a§ of the Finnish Accounting Act. The fair value of investments is determined based on price quotations on active markets, i.e., the buy quotation on the closing date of the financial period. Unrealised profits and losses due to changes in the fair value of money market investments are recognised in the income statement under finan- cial income and expenses in accordance with the Group’s updated accounting policies. Investments recognised via the fair value reserve consist solely of the equity investment in the unlisted shares in Genetic Analysis AS. Genetic Analysis AS was listed on the Spot- light Stock Market in Stockholm on 1 October 2021. Despite being traded in Sweden, the Genetic Analysis AS shares are listed in Norwegian krone. The valuation is consistent with the accounting principles of the Group. Research and development expenditure Research expenses are recognised as annual expenses in the year in which they were incurred. Development costs are capitalised on the balance sheet in accordance with IAS38 when Biohit can demonstrate that the development of the product is considered to meet the following criteria: 1) The product is considered to bring financial benefit beyond its useful life, 2) The product has already been developed, and Biohit intends to sell the product beyond its useful life, 3) The intangible asset will produce a probable economic benefit, 4) Biohit has adequate and available resources to complete the asset, 5) Biohit is able to determine the costs incurred during the development phase of the asset. Development expenditure that has previously been recognized as an expense cannot be capitalised at a later date. Depreciation is booked for an asset from the time it is ready for use. In 2024, the costs related to the six development projects have been capitalised. 73BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS 6.2 Revenue by business sector € 1,000 2024 2023 Diagnostics 10,202 9,009 Total 10,202 9,009 Revenue by market area € 1,000 2024 2023 Finland 207 211 Europe, other 1,663 1,637 North and South America 298 320 Asia 5,173 4,565 Other countries 2,860 2,276 Total 10,202 9,009 6.3 Other operating income € 1,000 2024 2023 From Group companies 610 553 Grants 78 277 Other 1 0 Total 689 830 Principle for revenue recognition When calculating net sales, indirect sales taxes and discounts are deducted from sales revenues. Sales of work performances are recognised when they are handed over. Maintenance and repairs Maintenance and repair expenses are recognised as expenses for the financial period. Pensions The company’s statutory pension cover and any applicable additional benefits is insured by a pension insurance company. Pension expenses are recognised on the basis of work performed by employees during working hours. Deferred taxes No deferred taxes have been recognised on the balance sheet. In accordance with general guidelines issued by the Accounting Board on 12 September 2006, the amounts of deferred taxes that must be entered into the balance sheet are presented in the notes, along with the amounts of tax liabilities and assets that should not be entered into the balance sheet because they are unlikely to be realised. Items denominated in foreign currencies Receivables and liabilities in foreign currencies have been translated into euros at the exchange rate quoted by the European Central Bank on the balance sheet date. Translation differences have been recognised through profit and loss. 74BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS 6.5 Personnel expenses and number of personnel € 1,000 2024 2023 Salaries 2,816 2,817 Pension expenses 452 456 Other personnel expenses 35 73 Salaries capitalised to non-current assets -256 3,260 Total personnel expenses 3,048 3,260 In the financial period, the parent company employed an average of 2024 2023 Office personnel 36 35 Average number of personnel 36 35 Number of personnel at the end of the financial period 36 37 6.6 Other operating expenses € 1,000 2024 2023 Travel expenses and other personnel expenses 275 205 Rents and maintenance expenses 406 372 Sales and marketing expenses 228 292 Other external services 918 903 Change in value of trade receivables 14 18 Other operating expenses 341 367 Total 2,182 2,157 6.7 Depreciation and impairment € 1,000 2024 2023 Intangible assets 13 13 Plant and equipment 54 76 Total 67 90 6.8 Auditors´ fees € 1,000 2024 2023 Companies belonging to the PricewaterhouseCoopers chain Auditors' fees 85 70 Auditors' statements 20 3 Tax service - - Other services 10 - Total fees paid to the auditor 115 73 6.4 Materials and services € 1,000 2024 2023 Purchases during the financial period 3,232 2,780 Change in inventories 100 124 Total materials and supplies 3,332 2,904 Total materials and services 3,332 2,904 75BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS 6.9 Financial income and expenses € 1,000 2024 2023 Dividend income From others - 1 Total dividend income - 1 Other interest and financial income From Group companies 4 4 From others 633 502 Other interest and financial income 637 506 Total financial income 637 507 Interest expenses and other financial expenses To Group companies -155 - To others -299 -128 Total financial expenses -454 -128 Total financial income and expenses 183 378 Financial income and expenses include foreign exchange gains/losses (net) 0 4 6.10 Income taxes € 1,000 2024 2023 Withholding tax -265 -208 Total -265 -208 The items above operating profit include foreign exchange losses/gains (net) or EUR 30 thousand (EUR 27 thousand). 76BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS 6.11 Intangibles assets 2024 € 1,000 Intangible rights Total Acquisition cost at the beginning of the financial period 189 189 Increases 322 322 Acquisition cost at the end of the financial period 511 511 Accumulated depreciation and impairment in the financial -6 -6 Depreciation and impairment in the financial period -13 -13 Accumultd dprcition t th nd of th finncil priod -19 -19 Book value at the beginning of the financial period 183 183 Book value at the end of the financial period 492 492 2023 € 1,000 Intangible rights Total Acquisition cost at the beginning of the financial period 7,952 7,952 Decreases from previous years -7,942 -7,942 Increases 178 178 Acquisition cost at the end of the financial period 189 189 Accumulated depreciation and impairment in the financial -7,934 -7,934 Accumulated depreciation of decreases 7,942 7,942 Depreciation and impairment in the financial period -13 -13 Accumultd dprcition t th nd of th finncil priod -6 -6 Book value at the beginning of the financial period 18 18 Book value at the end of the financial period 183 183 6.12 Tangible assests 2024 € 1,000 Plant and equipment Total Acquisition cost at the beginning of the financial period 1,239 1,239 Increases 70 70 Acquisition cost at the end of the financial period 1,309 1,309 Accumulated depreciation and impairment in the financial -1,094 -1,094 Depreciation in the financial period -54 -54 Accumulated depreciation at the end of the financial period -1,149 -1,149 Book value at the beginning of the financial period 144 144 Book value at the end of the financial period 161 161 2023 € 1,000 Plant and equipment Total Acquisition cost at the beginning of the financial period 1,641 1,641 Decreases from previous years -470 -470 Increases 67 67 Acquisition cost at the end of the financial period 1,239 1,239 Accumulated depreciation and impairment in the financial -1,488 -1,488 Accumulated depreciation of decreases 470 470 Depreciation in the financial period -76 -76 Accumulated depreciation at the end of the financial period -1,094 -1,094 Book value at the beginning of the financial period 154 154 Book value at the end of the financial period 144 144 77BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS 6.13 Investments Shares 2024 € 1,000 Group companies Others Total Book value at the beginning of the financial 31 2 32 Book value at the end of the financial period 31 2 32 Shares 2023 € 1,000 Group companies Others Total Book value at the beginning of the financial 31 2 32 Book value at the end of the financial period 31 2 32 6.15 Inventories € 1,000 2024 2023 Materials and supplies 307 433 Work in progress 36 5 Finished products/goods 470 248 Total inventories 813 686 6.14 Holdings in subsidiaries Subsidiaries 31 December 2024 2024 Biohit Healthcare Ltd, United Kingdom 100 % Biohit Healthcare S.r.l., Italiy 100 % 6.16 Receivables € 1,000 2024 2023 Long-term receivables Receivables from Group companies Loan receivables 0 155 Receivables from others Trade receivables 3,200 338 Loan receivables 138 117 Total long-term receivables 3,338 272 Short-term receivables Receivables from Group companies Trade receivables 358 338 Accrued income 8 4 Receivables from others Trade receivables 2,043 2,904 Other receivables 115 116 Accrued income 325 302 Total short-term receivables 2,849 3,664 78BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS 6.17 Financial securities Assets measured at fair value 2024 € 1,000 Total Level 1 Level 2 Traded securities and investment to Genetic Analysis AS * 2,950 67 2,883 * Genetic Analysis AS EUR 62 thousand on level 1 Assets measured at fair value 2023 € 1,000 Total Level 1 Level 2 Traded securities and investment to Genetic Analysis AS * 3 775 863 2 912 6.18 Cash and cash equivalents € 1,000 2024 2023 Cash in hand and at bank 2,538 2,144 79BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Shares and voting rights Biohit’s shares are divided into Series A and Series B shares. The series from each other in that each Series A share entitles its holder to twenty (20) votes at general meetings, while each Series B share carries one (1) vote. The dividend The dividend paid for Series B shares is, however, two (2) per cent of the nominal value higher than that paid for Series A shares. When this regulation is applied, the nominal value of the shares is taken to be EUR 0.17, which was the nominal value of the company’s shares when it decided to discontinue using nominal values for shares. 6.19 Shareholders´ equity € 1,000 2024 2023 Share capital 1 January 2,350 2,350 Share capital 31 December 2,350 2,350 Fair value reserve 1 January -1,873 -1,701 Decreases -46 -173 Fair value reserve 31 December -1,919 -1,873 Invested unrestricted equity fund 1 January 4,110 4,042 Increases 68 68 Invested unrestricted equity fund 31 December 4,178 4,110 Retained earnings 1 January 4,036 2,370 Retained earnings 31 December 4,036 2,370 Reported profit/loss for the financial period 2,407 1,666 Total shareholders' equity 11,052 8,623 Calculation of distributable equity 31 December € 1,000 2024 2023 Retained earnings 4,036 2,370 Profit/loss for the financial period 2,407 1,666 Invested unrestricted equity fund 4,178 4,110 Fair value reserve -1,919 -1,873 Capitalised development expenditure -480 -166 Total 8,222 6,108 80BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Parent company’s share capital structure 2024 shares % of shares % of votes 2023 shares Series A shares (20 votes per share) 2,975,500 19.6 83.0 2,975,500 Series B shares (1 vote per share) 12,206,093 80.4 17.0 12,138,093 Total 15,181,593 100.0 100.0 15,113,593 6.20 Long-term liabilities € 1,000 2024 2023 Loans from Group companies - - Loans from financial institutions - - From others - - Total - - The company’s share capital is EUR 2,350,350.81. The company does not hold any of its own shares. Based on a resolution of the AGM held on 16 September 2020, the Board of the company is authorised to decide on the issue of shares and to issue the special rights referred to in Chapter 10 of the Limited Liability Companies Act so that the maximum number of new Series B shares to be issued pursuant to the special rights is 3,000,000, which corresponds to approximately 24.9% of all of the company’s Series B shares. In 2021 and in 2022, the company issued shares options for 760,000 new shares. 81BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS 6.22 Short-term liabilities € 1,000 2024 2023 Loans from financial institutions, current proportion - - Advances received 1 4 Trade payables 555 408 Accruals and deferred income 977 1 140 Other liabilities 587 481 Total short-term liabilities 2,121 2,032 6.23 Pledges, contingent liabilities and other liabilities € 1,000 2024 2023 Debts for which mortgages have been pledged The company has not pledged any collateral. Leasing commitments Payable in the next financial period 78 61 Payable later 65 58 Total 143 119 Rental commitments Payable in the next financial period 192 186 Payable later 192 745 Total 384 932 Other contingent liabilities Guarantees 4 4 6.21 Deferred tax assets and liabilities Deferred tax liabilities There are no deferred tax liabilities. Deferred tax assets The tax-deductible losses have not been noted in the balance sheet. There is a total of EUR16.4million loss in Finland. (Year 2014-2021: EUR16.4million) The significant items of accruals and deferred income are salary-related deferred items valued at EUR 749 thousand (EUR 916 thousand). Leasing and rental fees mainly consist of fixed-term leasing and rental agreements lasting longer than one year. Contingent liabilities on behalf of Group companies The company has no contingent liabilities on behalf of Group companies. 82BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS 7. Board of Director’s proposal Regarding the Distribution of Profits On 31 December 2024 the parent company’s distributable assets (unrestricted equity) amounted to EUR 8,222,057.08, including the profit for the financial period of EUR 2,406,631.87. The Board of Directors proposes to the Annual General Meeting that the company distribute no divided for the last financial year and that the profit for the financial year be transferred to retained earnings. Helsinki, 11 February 2025 Vesa Silaskivi Chairman of the Board of Directors Auditor’s statement A statement has been issued today on the completed audit. Helsinki, 12 February 2025 PricewaterhouseCoopers Oy Firm of auditors Liu Feng Member of the Board of Directors Kalle Härkönen Member of the Board of Directors Lea Paloheimo Member of the Board of Directors Osmo Suovaniemi Member of the Board of Directors Jussi Hahtela President & CEO Tiina Puukkoniemi KHT 83BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS 8. Auditor’s Report Opinion In our opinion  the consolidated financial statements give a true and fair view of the group’s financial position, financial performance and cash flows in accordance with IFRS Accounting Stan- dards as adopted by the EU  the financial statements give a true and fair view of the parent company’s financial performance and financial position in accordance with the laws and regulations governing the preparation of financial statements in Finland and comply with statutory requirements. Our opinion is consistent with the additional report to the Board of Directors. What we have audited We have audited the financial statements of Biohit Oyj (business identity code 0703582-0) for the year ended 31 December 2024. The financial statements comprise:  The consolidated balance sheet, statement of comprehensive income, statement of changes in equity, statement of cash flows and notes, which include material accounting policy information and other explanatory information  the parent company’s balance sheet, income statement, cash flow statement and notes. Basis for Opinion We conducted our audit in accordance with good auditing practice in Finland. Our responsi- bilities under good auditing practice are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the parent company and of the group companies in accordance with the ethical requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical responsibilities in accordance with these requirements. To the best of our knowledge and belief, the non-audit services that we have provided to the parent company and group companies are in accordance with the applicable law and regulations in Finland and we have not provided non-audit services that are prohibited under Article 5(1) of Regulation (EU) No 537/2014. The non-audit services that we have provided are disclosed in note 2.9 to the Financial Statements. Report on the audit of the financial statements 84BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Our Audit Approach Overview Materiality  Overall group materiality: € 150 thousand, which is 1% of total assets Audit scope  In addition to the parent company, our group scope consists of two foreign subsidiaries. Key audit matters  Cut-off of Revenue recognition  Royalty income from License included in Distribution Agreement (Biohit HealthCare (Hefei) Co. Ltd) As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we considered where management made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. Materiality The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall group materiality for the consolidated financial statements as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements on the financial statements as a whole. Materiality Audit scope Key audit matters 85BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Overall group materiality € 150 thousand How we determined it 1% of total assets Rationale for the materiality benchmark applied Based on our assessment the total assets provide a more solid base for determining the materiality than the commonly used income statement-based benchmarks. How we tailored our group audit scope We tailored the scope of our audit, taking into account the structure of the group, the accounting processes and controls, and the industry in which the group operates. Biohit Oyj is a Finnish biotechnology company operating on global markets, which has foreign subsidiaries in Great Britain and Italy. We determined the type of work that needed to be performed at group companies. This work was performed by the group audit team. Audit was performed for the parent company and for Biohit Healthcare Ltd, UK. For the Italian subsidiary, we performed certain specific audit procedures on selected profit and loss statement items and balance sheet account balances as well as analytical procedures. In addition, we performed audit procedures on the group level. By performing the procedures above, we have obtained sufficient and appropriate evidence regarding the financial information of the Group as a whole to provide a basis for our opinion on the consolidated financial statements. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud. 86BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Key audit matter in the audit of the group Cut-off of Revenue recognition Refer to the financial statements accounting principles and the financial statements note 2.3 Net sales and segment information Biohit Oyj (“Biohit”) is a Finnish Biotechnology company operating on global markets. Biohit’s product portfolio consists of diagnostic tests, analysis systems, products that bind carcinogen acetaldehyde in monoclonal antibodies and service laboratory operations. The Group’s revenue is predominately generated from distribution agreements signed with several distributors who then sell the products further to healthcare operators. Revenue from distribution agreement-based product sales is recognised at a point of time when the control has transferred to a distributor in accordance with delivery terms. We determined cut-off of revenue recognition as an audit focus area, as there is a risk that revenue in the financial statements is recognized in an incorrect period due to either errors or fraud. How our audit addressed the key audit matter We gained an understanding of the revenue recognition process; and we performed substantive audit procedures to ensure revenue is recorded in the correct period. Our substantive audit procedures included:  testing a sample of selected distribution agreements to ensure the correctness of revenue recognition criteria applied  testing revenue transaction that occurred close to the year end  testing certain revenue related balances recognised in the balance sheet  testing a sample of revenue transactions occurred during the year  testing the basis for revenue recognition cut-off for selected general ledger journal entries posted in revenue accounts  auditing the notes and accounting principles regarding revenue recognition. 87BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS  we read the Distribution agreement signed 8 February 2022 and obtained evidence that Hefei pledged 1.5 million of its Biohit class B shares (value approximately 3,4 million euros at 31.12.2024) to Biohit, as a security for its payment obligations  we made an accounting analysis of the royalty income from license based on IFRS 15  we reconciled the management calculation of estimated royalty income based on dis- tribution agreement to the accounting records and financial statements and ensured those were correctly accounted for based on estimated amount  we audited royalty payments by Hefei in 2024  we assessed the recoverability of royalty income in terms of cash flow probabilities, cash flow timing, the pledge and payments received  we audited balance sheet items relating to royalty income from license  we audited the notes and accounting principles regarding royalty income from license Biohit Oyj’s shareholder Biohit HealthCare (Hefei) Co. Ltd (”Hefei”) acts as the exclusive distributor of Biohit’s certain GastroPanel products in China. The parties have in February 2022 agreed on multiannual distribution agreement for certain GastroPanel products in China. As disclosed in note 2.27 “Related parties”, royalty income from license to Hefei, 2,8 million euros (2,2 million euros in 2023) forms a significant portion of the company’s turnover. Revenue recognition is based on the distribution agreement, its IFRS-accounting interpre- tation, cash flow probabilities and timing (note 2.3). As disclosed in note 2.27, Hefei has pledged 1.5 million of its Biohit class B (value approx- imately 3,4 million euros on December 31, 2024) shares to Biohit as a security for its payment obligations under the new distribution agreement. Royalty income from License included significant management estimation. We determined that Royalty income from License is a key audit matter due to the signifi- cance of the transaction and due to the estimation uncertainty relating to it. The above-mentioned Key audit matter “Royalty income from License included in Distribution Agreement (Biohit HealthCare (Hefei) Co. Ltd)“ is also a key audit matter with respect to our audit of the parent company financial statements. Our audit procedures were aligned with the ones presented above. There are no significant risks of material misstatement referred to in Article 10(2c) of Regulation (EU) No 537/2014 with respect to the consolidated financial statements or the parent company financial statements. Royalty income from License included in Distribution Agreement (Biohit HealthCare (Hefei) Co. Ltd) Refer to the financial statements accounting principles and the financial statements note 2.3, Net sales and segment information and note 2.27 Related party transactions We obtained understanding of the impact of the distribution agreement to royalty income from license and related balance sheet items. Our substantive audit procedures included following procedures: 88BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Responsibilities of the Board of Directors and the Managing Director for the Financial Statements The Board of Directors and the Managing Director are responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU, and of financial statements that give a true and fair view in accordance with the laws and regulations governing the preparation of financial statements in Finland and comply with statutory requirements. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Board of Directors and the Managing Director are responsible for assessing the parent company’s and the group’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting. The financial statements are prepared using the going concern basis of accounting unless there is an intention to liquidate the parent company or the group or to cease operations, or there is no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with good auditing practice will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of express- ing an opinion on the effectiveness of the parent company’s or the group’s internal control.  Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.  Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast signif- icant doubt on the parent company’s or the group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclo- sures are inadequate, to modify our opinion. Our conclusions are based on the audit evi- dence obtained up to the date of our auditor’s report. However, future events or conditions may cause the parent company or the group to cease to continue as a going concern. 89BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Other Reporting Requirements Appointment We were first appointed as auditors by the annual general meeting on 14 April 2014. Our appointment represents a total period of uninterrupted engagement of 11 years. Other Information The Board of Directors and the Managing Director are responsible for the other informa- tion. The other information comprises the report of the Board of Directors and the infor- mation included in the Annual Report, but does not include the financial statements or our auditor’s report thereon. We have obtained the report of the Board of Directors prior to the date of this auditor’s report and the Annual Report is expected to be made available to us after that date. Our opinion on the financial statements does not cover the other information. In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit, or otherwise appears to be materially misstated. With respect to the report of the Board of Directors, our responsibility also includes considering whether the report of the Board of Directors has been prepared in compliance with the applicable provisions. In our opinion  the information in the report of the Board of Directors is consistent with the information in the financial statements  the report of the Board of Directors has been prepared in compliance with the applicable provisions.  Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events so that the financial statements give a true and fair view.  Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the group financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any signifi- cant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the cur- rent period and are therefore the key audit matters. We describe these matters in our audi- tor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. 90BIOHIT Healthcare Annual Report 2024 BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Helsinki 12 February 2025 PricewaterhouseCoopers Oy Authorised Public Accountants Tiina Puukkoniemi Authorised Public Accountant (KHT) 91BIOHIT Healthcare Annual Report 2024 www.biohithealthcare.com Biohit Oyj Laippatie 1 00880 Helsinki, Finland Tel. +358 9 773 861 info@biohit.fi 1 (2) PricewaterhouseCoopers Oy, Authorised Public Accountants, P.O. Box 1015 (Itämerentori 2), FI-00101 HELSINKI Phone +358 20 787 7000, www.pwc.fi Reg. Domicile Helsinki, Business ID 0486406-8 Independent Auditor’s Reasonable Assurance Report on Biohit Oyj’s ESEF Financial Statements To the Management of Biohit Oyj We have been engaged by the Management of Biohit Oyj (business identity code 0703582-0) (hereinafter also “the Company”) to perform a reasonable assurance engagement on the Company’s consolidated IFRS financial statements for the financial year 1 January - 31 December 2024 in European Single Electronic Format (“ESEF financial statements”). Management’s Responsibility for the ESEF Financial Statements The Management of Biohit Oyj is responsible for preparing the ESEF financial statements so that they comply with the requirements as specified in the Commission Delegated Regulation (EU) 2019/815 of 17 December 2018 (“ESEF requirements”). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of ESEF financial statements that are free from material noncompliance with the ESEF requirements, whether due to fraud or error. Our Independence and Quality Management We have complied with the independence and other ethical requirements of the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. Our firm applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. Our Responsibility Our responsibility is to express an opinion on the ESEF financial statements based on the procedures we have performed and the evidence we have obtained. We conducted our reasonable assurance engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) Assurance Engagements Other than Audits or Reviews of Historical Financial Information. That standard requires that we plan and perform this engagement to obtain reasonable assurance about whether the ESEF financial statements are free from material noncompliance with the ESEF requirements. A reasonable assurance engagement in accordance with ISAE 3000 (Revised) involves performing procedures to obtain evidence about the ESEF financial statements compliance with the ESEF requirements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material noncompliance of the ESEF financial statements with the ESEF requirements, whether due to fraud or error. In making those risk assessments, we considered internal control relevant to the Company’s preparation of the ESEF financial statements. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Assently: 62c384b8e2c18194e309dea9ddabcd76c19bc83302a2d28e5779490eb60687199743250de4a7b6e6b63c71b9c8ffaa4f713d20bb49d34316ecc22d1984102e48 2 (2) Opinion In our opinion, Biohit Oyj’s ESEF financial statements for the financial year ended 31 December 2024 comply, in all material respects, with the minimum requirements as set out in the ESEF requirements. Our reasonable assurance report has been prepared in accordance with the terms of our engagement. We do not accept, or assume responsibility to anyone else, except for Biohit Oyj for our work, for this report, or for the opinion that we have formed. Helsinki PricewaterhouseCoopers Oy Authorised Public Accountants Tiina Puukkoniemi Authorised Public Accountant (KHT) Assently: 62c384b8e2c18194e309dea9ddabcd76c19bc83302a2d28e5779490eb60687199743250de4a7b6e6b63c71b9c8ffaa4f713d20bb49d34316ecc22d1984102e48 The following documents were signed Tuesday, March 18, 2025 Signatures Biohit Oyj - ESEF report 2024.pdf (134936 byte) SHA-512: 0b469ae6d0335662d9f8a0edd9b799e54287f 2564cd4f957c7b1dc87053c82f9ad3ccbdf507801a05c9 46a1374b9552878426a4227d045ea7bf79c1bb04264d2 Tiina Annika Puukkoniemi, PricewaterhouseCoopers Oy tiina.puukkoniemi@pwc.com Signed with electronic ID (Finnish Trust Network) 3/18/2025 8:31:04 PM (CET) Biohit Oyj ESEF report 2024 Verify the integrity of this receipt by scanning the QR-code to the left. You can also do this by visiting https://app.assently.com/case/verify SHA-512: 62c384b8e2c18194e309dea9ddabcd76c19bc83302a2d28e5779490eb60687199743250de4a7b6e6b63c71b9c8ffaa4f713d20bb49d34316ecc22d198410 2e48 About this receipt This document has been electronically signed using Assently E-Sign in accordance with eIDAS, Regulation (EU) No 910/2014 of the European Parliament and of the Council. An electronic signature shall not be denied legal effect and admissibility as evidence in legal proceedings solely on the grounds that it is in an electronic form or that it does not meet the requirements for qualified electronic signatures. A qualified electronic signature shall have the equivalent legal effect of a handwritten signature. Assently E-Sign is provided by Assently AB, company registration number 556828-8442. Assently AB's Information Security Management System is certified according to ISO/IEC 27001:2013. 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