C-RAD

Earnings Release • Jan 31, 2020

C-RAD AB CONSOLIDATED YEAR-END REPORT

JANUARY-DECEMBER 2019

Press release January 31, 2020

RECORD ORDER INTAKE LEAD TO ALL-TIME HIGH ORDER BACKLOG

• Order intake: 88.1 (75.6) MSEK.
• Order backlog: 267.1 (194,0) MSEK.
• Revenues: 51.0 (57.7) MSEK.
• Operating profit before items affecting comparability*: -0.5 (3.3) MSEK*.
• Operating profit: -12.1 (3.3) MSEK.
• Net results after tax: -12.5 (24.3**) MSEK.
• Result per share: -0.40 (0.79) SEK.

SIGNIFICANT EVENTS DURING THE QUARTER

• Large order from Belgian customers, order value 26 MSEK.
• Per-Arne Blomquist elected as new board member.
• Henrik Bergentoft assigned as new CFO starting March 1, 2020.
• C-RAD opens a new office in Shanghai.

SIGNIFICANT EVENTS AFTER THE QUARTER

• Brian Loar was appointed President, North America.

FOURTH QUARTER 2019 FULL YEAR JAN-DEC 2019

• Order intake: 269.8 (246.8) MSEK.
• Revenues: 205.4 (190.1) MSEK.
• Operating profit before items affecting comparability*: 2.0 (0.8) MSEK.
• Operating profit: -9.6 (0.8) MSEK.
• Net results after tax: -13.8 (21.2**) MSEK.
• Result per share: -0.45 (0.69) SEK.

SUMMARY FINANCIAL RESULT

		Q4, OCT-DEC			FULL YEAR
MSEK	Note	2019	2018	Change	2019	2018	Change
Order intake		88,1	75,6	16%	269,8	246,8	9%
Revenues		51,0	57,7	-12%	205,4	190,1	8%
Gross profit		30,6	34,6	-12%	121,0	110,1	10%
Gross profit margin (%)		60%	60%		59%	58%
EBITDA adj for IFRS 16	8	0,5	5,9	-91%	8,7	7,4	18%
Operating profit before items affecting comparability	8	-0,5	3,3		2,0	0,8	146%
Operating profit		-12,1	3,3		-9,6	0,8
Net results after tax		-12,5	24,3		-13,8	21,2
Cash		29,5	9,3	217%
Share price balance sheet day, SEK		44,50	25,80	72%
Order backlog		267,1	194,0	38%
out of which Products		144,4	120,2	20%
out of which Service contracts		122,7	73,8	66%

*Excl write-down of capitalized development expenses and stock for GEMini of MSEK 11.6.

**Tax revenue in 2018 refer to one-off booking of deferred tax asset of 21 MSEK.

COMMENTS FROM THE CEO

2

During 2019 C-RAD continued to strengthen its position in the market. We still see and expect the market to grow and it is clear thar our technology and solutions start to become standard of care. New partnerships at the beginning of the year as well as the extension of our strategic partnership with Elekta were two important milestones that will give us further growth opportunities in the coming years.

The full year of 2019 started somewhat slow in the first half year on order intake but picked up the last six months. Q3 and Q4 grew with 9 percent and 16 percent respectively. C-Rad has seen 14 consecutive quarters of increased order intake, if we exclude Q1 2019. This led to a record high order backlog of 267.1 MSEK at year end.

In 2019 there were fewer large projects than in the previous year, but we succeeded to win two projects in Belgium with in total 26 MSEK for Sentinel 4DCT and Catalyst HD and a multi-year service contract. This was a great success for C-RAD. Orders of this magnitude have a significant impact on the order intake in one quarter and affect the volatility that we see in order intake but also in revenue.

Sales of our service and positioning products grew to 25.3 MSEK (15,7) and 59.4 MSEK (50,0) respectively – a very healthy development. The rapid adoption of our service contracts shows the confidence our customers have in

"The rapid adoption of our service contracts shows the confidence our customers have in C-RAD as a partner and is a very good foundation for recurring revenues moving forward."

C-RAD as a partner and is a very good foundation for recurring revenues moving forward. After the wait-and-see momentum as a consequence of acquisitions and newly formed alliances between market players, that we noticed earlier this year, customers have started purchasing our technology again and order intake is picking up. On the full year we succeeded to grow order intake with 9 percent for the Group.

However, in the fourth quarter we saw a mixed picture in the Group. Strong order intake in especially Americas and EMEA supported a 16 percent growth. Consolidated revenues weakened by 12 percent due to a decline of 34 percent in EMEA. The drop in EMEA was explained by lower order intake in the first half year and that the book and bill period has increased from 6 to 8 month.

"For the full year 2019 revenue for the group increased with 8 percent, gross margin improved from 58 percent to 59 percent and EBITDA adj for IFRS 16 increased with 18 percent to 8.7 MSEK."

Gross margin in the fourth quarter remained at 60 percent but given the lower revenue EBITDA adjusted for IFRS 16 was only 0.5 MSEK which was considerably lower than last year. For the full year 2019 revenue for the group increased with 8 percent, gross margin improved from 58 percent to 59 percent and EBITDA adj for IFRS 16 increased with 18 percent to 8.7 MSEK. This is the second consecutive year with an underlying positive EBITDA result.

The GEMini project is not making progress at the speed we expected and timing to release a product and scale up sales is uncertain. At the same time, we see a huge opportunity for our positioning products. Therefore, we decided to write down the activated development efforts related to GEMini and for now focus our organization on the positioning products. The customer project in China is ongoing and we continue to support the efforts. The total amount of the write off is 11.6 MSEK for capitalized development and stock, and is booked in the 4th quarter 2019.

NEW PRODUCTS

C-RAD has been developing a new hard and software platform for the treatment room that is going to be launched under the name Catalyst+™. Catalyst+ offers higher application versatility and significantly higher performance to our customers. It is expected that the new platform will give a noticeable reduction on the production cost. Depending on us receiving regulatory clearance the product will be released to the market in spring 2020. Also, we are in the last steps to release the cAccessory module as an upgrade opportunity to our installed base, but for new customers. With this in place the C-RAD solution validates the patient prior to treatment, the correct setup and an accurate position prior and during treatment. This is a big step forward and provides a comprehensive solution to our customers.

ORGANIZATION

To fully capitalize on the opportunities in North America C-RAD announced the recruitment of Brian Loar for the role President C-RAD North America. Brian is in charge of our business through our direct sales organization and newly established partnership with Elekta. Brian has a more than 20 years of experience within the radiation therapy business in North America. He is joining C-RAD from a position as Vice President Sales, North America at Varian Medical Systems.

"To fully capitalize on the opportunities in North America C-RAD announced the recruitment of Brian Loar for the role President C-RAD North America."

We remain confident about our market opportunity and are convinced that C-RAD is in a good position to outgrow the market. We have a fantastic team, excited customers and great products that allow us to enable our customers to implement high precision radiation therapy to the benefit of their patients.

Tim Thurn,CEO

FINANCIAL DEVELOPMENT, GROUP

ORDER INTAKE

Order intake during the fourth quarter increased by 16 percent to 88.1 (75.6) MSEK compared to the same period in 2018. This increase is primarily attributable to sales in the US and in the EMEA-region. Sales of positioning products increased again by 19 percent during the quarter, while sales of service contracts (Life Cycle Business) increased by 61 percent. Sales of HIT-lasers decreased by 53 percent. In line with the cancelled distribution contract with IBA that was effective as of October 1st, also order intake for distribution products decreased during the quarter. The long-term interest and demand for our positioning products in the marketplace continues to grow, but order intake volume may fluctuate between the quarters.

The order backlog amounted to record high 267.1 (194.0) MSEK on the balance sheet day, indicating the future revenue. Revenue from service contracts which guarantees a stable revenue over a longer period of time, amounted to 122.7 MSEK.

Order intake during January – December increased by 9 percent and amounted to 269.8 MSEK compared to 246.8 MSEK during 2018. Our North American activities continue to develop well and more than doubled the order intake compared to last year, while order intake in the EMEA- and APAC regions were relatively unchanged compared to previous year.

During the quarter, the company received an order of approximately 26 MSEK for C-RADs surface tracking solution based on Catalyst HD™ and Sentinel 4DCT™ from Belgian customers.

REVENUES

Revenues amounted to 51.0 (57.7) MSEK in the quarter, corresponding to a decrease of 12 percent. Revenues from the Americas increased by 154 percent, APAC-region increased by 8 percent while revenues for EMEA-region decreased by 34 percent.

Revenues during the full year 2019 increased by 8 percent and amounted to 205.4 (190.1) MSEK.

SEASONALITY

There is a seasonal pattern in C-RAD's operations. The second half of the year and the fourth quarter in particular are usually the strongest periods, both in terms of order intake and revenues. This is due to the fact that a large number of customers are hospitals and clinics, which have annual budgets aligned to the calendar year. As the larger part of C-RAD's cost base is fixed, fluctuations in revenue have a direct impact on the quarterly operating profit. Volatility in order intake between quarters and markets is to be expected in our business.

ORDER BACKLOG AND ORDER CONVERSION RATE

The order backlog represents orders that have been received but not delivered and invoiced. The backlog amounted to 267.1 MSEK at the end of the fourth quarter of 2019 compared to 194.0 MSEK in 2018, an increase of 38 percent. From the total order backlog, 144.4 (120.2) MSEK relates to products and 122.7 (73.8) MSEK refer to Life Cycle Business (service contracts).

The weighted average delivery time for products recognized as revenue in the fourth quarter was just above five months (four months in the same quarter 2018). This is the time from receiving an order until the order is delivered and revenue recognized, based on deliveries of C-RADs own products. For the full year 2019, the average delivery time was seven months (five months during 2018).

19.4 MSEK of the order backlog for Life Cycle Business will be recognized as revenue within 12 months, as service contracts are recognized as revenue over the contract period. This can be compared to revenues of 17.3 MSEK for the last 12 months. The service contract can be up to eight years while the average duration is around five years.

GROSS PROFIT

Gross profit margin was 60 percent during the fourth quarter 2019, unchanged compared to the same period 2018. Fluctuations in gross profit can be expected in shorter periods as it is dependent on the product mix and market as well as the exchange rate fluctuations.

Gross profit margin for the period January–December amounted to 59 percent compared to 58 percent during 2018.

OPERATIONAL EXPENSES

Operational expenses for the fourth quarter amounted to 14.0 (12.5) MSEK. The increase is mainly related to the development projects that are being activated.

The implementation of IFRS 16, Leasing, by January 1st, means that approximately 0.7 MSEK related to office and car lease contracts were accounted for as amortization and interest on the amortizations instead of as previously Operational expenses in the quarter.

For the full year 2019, operational expenses amounted to 52.6 (45.6) MSEK, and the amount recognized as amortization instead of operational expenses amounted to 2.5 MSEK.

PERSONNEL EXPENSES

Personnel expenses for the fourth quarter 2019 amounted to 16.9 (16.3) MSEK. The increase compared to last year is mainly related to more employees within research and development and related activities, as was planned going into this year. Personnel expenses for the full year amounted to 63.9 (59.3) MSEK.

The average number of employees amounted to 59 during the fourth quarter 2019 compared to 54 during the corresponding period in 2018. At the end of December 2019, the number of employees in the Group amounted to 59 (52).

OTHER OPERATING INCOME/EXPENSES

Exchange rates on the balance sheet day decreased for both EUR and USD from October 31, 2019 to December 31, 2019. As the group has exposure to these currencies in receivables, that also are being revaluated on balances sheet day, this resulted in exchange rate differences of -1.3 MSEK during the quarter, out of which -0.6 is not yet realized. For the full year, total exchange rate differences amounted to -0.8 MSEK, out of which -0.6 is not yet realized.

CAPITALIZED DEVELOPMENT COSTS

Capitalizations during the fourth quarter of 2019 of 3.0 (0.8) MSEK are related to continued development of the Positioning products. Amortization of capitalized development expenditures amounted to 1.4 (1.5) MSEK during the quarter. For the full year, 6.7 (3.4) MSEK have been capitalized and 5.3 (3.9) MSEK has been amortized.

Total capitalized development costs amounted to 13.3 (22.7) MSEK at the end of December.

GEMini

The GEMini project is not making progress at the speed we expected and timing to release a product and scale up sales is uncertain. At the same time, we see a huge opportunity for our positioning products. Therefore, we decided to write down the activated development efforts related to GEMini and for now focus our organization on the positioning products. The customer project in China is ongoing and we continue to support the efforts. The total amount of the write off is 11.6 MSEK and is booked in the 4th quarter 2019.

NET FINANCIAL INCOME

Net financial income for the quarter amounted to -0.5 (0) MSEK and -1.7 (-0.5) MSEK for the full year.

NET RESULT AFTER TAX

Net results after tax in the quarter amounted to -12.5 (24.3) MSEK, corresponding to -0.40 (0.79) SEK per share. For January-December, net result after tax amounted to -13.8 (21.2), corresponding to -0.45 (-0.69) SEK per share. Tax expense refer to reverse deferred tax asset and deferred tax asset for the Swedish entities and does not affect cash flow.

FINANCING AND CASH FLOW

Cash flow during the fourth quarter amounted to -0.1 (1.4) MSEK. Operating cash flow was 8.6 (-2.6) MSEK. Cash flow from financing activities amounted to -5.7 MSEK in line with decreased usage of the invoice discounting solution of 5.2 MSEK to 14.7 MSEK during the quarter.

By December 31, C-RADs total available funds amounted to 36.8 (21.4) MSEK, out of which cash balance amounted to 29.5 (9.3) MSEK and unutilized credit facilities amounted to 7.3 (12.1) MSEK. Utilized credit facilities for invoice discounting solution as of balance sheet day amounted to 14.7 (19.9) MSEK.

DISPUTES

The Stockholm Patent and Market court confirmed C-RAD's entitlement to the patent application "Ionizing radiation detecting device" in its verdict published on July 26th. C-RAD filed a patent entitlement lawsuit in May 2017 against the company Beamocular AB. Beamocular has appealed the verdict.

C-RAD Imaging AB, a subsidiary of the C-RAD group, has had a dispute since December 2017 with a former employee, who has also been CEO of the same subsidiary. The dispute is about the question if C-RAD trade secrets have been revealed in connection with the employment of the employee being ended. The verdict from Uppsala District Court in June ruled in favor of the defendant and informed C-RAD to reimburse the other party for legal fees incurred, amounting to 1.7 MSEK. C-RAD has appealed the verdict and received approval to appeal.

All expenses for the disputes are recognized as cost when they arise.

SIGNIFICANT RISKS AND UNCERTAINTIES

Reference is made to the Annual Report for 2018 page 49-53, regarding significant risks and uncertainties, and how these are managed.

SHARES

As of December 31, 2019, the total number of shares in C-RAD were 31 021 036, out of which 862 887 A-shares and 30 158 149 B-shares. Total number of voting rights amounted to 38 787 019, out of which for A-shares 8 628 870 voting rights and for B-shares 30 158 149 voting rights. The Company's registered share capital was 4.7 MSEK.

ONGOING INCENTIVE PROGRAMS

In order to strengthen the company's possibilities to keep competent personnel and key employees, the company has introduced incentive programs to achieve a long-term owner perspective. The incentive program consists of warrants, sold at market price based on the Black & Scholes valuation model. The following incentive programs are active as per the balance sheet day:

	Number of subscribed warrants	Start date	Earliest date Latest date for exercise	for exercise	Exercise price (kr/aktie)	Average warrant price (SEK/warrant) day (SEK)	Total capital increase as per balance sheet	Total capital increase upon exercise 100% (SEK)
Incentive program 2017/2020	227 618	2017-05-16	2020-02-01	2020-04-30	21,21	3,2	726 851	5 554 629
Incentive program 2018/2021	89 000	2018-06-15	2021-02-01	2021-04-30	40,54	4,9	440 200	4 048 260
Incentive program 2019/2022	98 991	2019-05-23	2022-02-01	2022-04-30	47.64	3,3	324 942	5 040 873

In the incentive program for 2019/2022, C-RAD employees has subscribed for 98 991 warrants, representing 99 percent of the total amount. For the respective categories, CEO has subscribed for 15 137 warrants, other executives have signed up for 50 273 warrants and other managers and employees have signed up for 33 581 warrants. The Company has the right to repurchase the warrants if the employment ceases or if the participant wished to forward the warrants.

OTHER SIGNIFICANT EVENTS DURING THE QUARTER

On December 17, the Extra General Meeting elected Per-Arne Blomquist as a new member of the board of C-RAD. Per-Arne has a vast experience from managerial positions in companies such as SEB Group, Telia and Alfa Laval.

During the quarter, C-RAD opened a new office in Shanghai that will allow the company to host the growing local organization and to invite customers to present C-RAD and the technology in its own facility.

There were no other significant events in reporting period other than what has been described in the report above.

OTHER SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

On January 15, 2020, Brian Loar was appointed President of C-RAD North America. In his capacity he will join C-RAD's group management team. Brian will have the business responsibility for C-RAD in North America, covering sales, application, service and installation. Brian Loar has 22 years of experience within radiation therapy in different sales leadership roles in North America. Most recently he held the position as Vice President Sales, North America for Varian a manufacturer of linear accelerators and software solutions.

There were no other significant events after the reporting period.

PARENT COMPANY

No operations are carried in the Parent Company except for Group Management and administration. For the full year 2019, revenues for the Parent Company amounted to 16.2 (18.9) MSEK and the operating loss was -26.5 (-3.4) MSEK. In conjunction with the write-down of capitalized development expenditures in the subsidiary C-RAD Imaging AB, a shareholders contribution of 7.5 MSEK was made which was also written down in its entirety. There was also additional write-down of shares and receivables in C-RAD Imaging AB of 15.1 MSEK.

APPROPRIATION OF THE COMPANY'S PROFIT OR LOSS

The board will propose to the Annual General Meeting that all available funds be carried forward.

UPCOMING EVENTS

May 8, 2020	Interim report for January-March. Webcast.
May 8, 2020	Annual General Meeting 2020.
July 31, 2020	Interim report for April-June. Webcast.
October 22, 2020	Interim report for July-September. Webcast.
January 28, 2021	Consolidated Year-End Report 2020.

PRESENTATION OF INTERIM REPORT

CEO Tim Thurn and CFO Therése Björklund will present the interim report by Webcast on Friday January 31 at 11:00 CET. After the presentation, there will be room for questions and answers. The presentation will be held in English. To participate in the presentation live, please register your cooperation at: https://attendee.gotowebinar.com/register/5556738657110259724.

FUTURE OUTLOOK

We remain confident about our market opportunity and are convinced that C-RAD is in a good position to outgrow the market. C-RAD will continue to improve efficiency in cancer treatments for health care providers, better in quality and safer for patients and medical personnel.

CERTIFICATION BY THE CEO

The Chief Executive Officer of C-RAD AB confirms that this interim report provides a true and fair view of the Group's operations, financial position and earnings, and provides an overview of the significant risks and uncertainties that the company and the group companies are facing.

If there are any deviations between the reports in English and Swedish, the Swedish version is valid. This interim report has not been reviewed by the company auditors.

Uppsala, January 31, 2020

Tim Thurn, CEO

C-RAD AB (PUBL)

C-RAD AB (publ)

Bredgränd 18, SE-753 20 Uppsala Telefon +46 (0)18 - 66 69 30 www.c-rad.com Org. nr. 556663-9174

For more information: Tim Thurn, CEO, Phone: +46 (0)18 66 69 30

C-RAD AB is listed on Nasdaq Stockholm Small Cap since December 2014. The information in this interim report is such that C-RAD is required to disclose pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act.

The information was submitted for publication, through the agency of the contact person set out above, on January 31, 2020 at 8:30 am.

Consolidated Income Statement in brief	Q4	Q4	Full Year	Full Year
Mkr	2019	2018	2019	2018
Revenues	51,0	57,7	205,4	190,1
Raw material and consumables	-20,4	-23,1	-84,4	-80,0
Gross profit	30,6	34,6	121,0	110,1
Gross profit margin	60%	60%	59%	58%
Other external expenses	-14,0	-12,5	-52,6	-45,6
Personnel expenses	-16,9	-16,3	-63,9	-59,3
Capitalized development costs	3,0	0,8	6,7	3,4
Depreciation	-13,7	-2,6	-21,0	-6,6
Other operating income/expenses	-1,2	-0,8	0,1	-1,3
Total operating expenses	-42,8	-31,4	-130,7	-109,3
Operating income	-12,1	3,3	-9,6	0,8
Financial income	0,0	0,0	0,0	0,4
Financial costs	-0,5	0,0	-1,7	-1,0
Income before tax	-12,7	3,3	-11,4	0,2
Tax	0,2	21,0	-2,4	21,0
Net income	-12,5	24,3	-13,8	21,2
(Attributable to Parent company´s shareholders)
Results per share before dilution	-0,40	0,79	-0,45	0,69
Results per share after dilution	-0,40	0,78	-0,45	0,68
Consolidated Statement of Comprehensive Income	Q4	Q4	Full Year	Full Year
MSEK	2019	2018	2019	2018
Net income	-12,5	24,3	-13,8	21,2
Other comprehensive income
Income/expenses recognized in equity
Exchange differencies on translating foreign operations	-0,6	0,1	0,2	0,5
Other comprehensive income of the period (after tax)	-13,1	24,4	-13,6	21,7
Total comprehensive income for the period	-13,1	24,4	-13,6	21,7
(Attributable to Parent company´s shareholders)

Segment Reporting	Q4	Q4	Full Year	Full Year
MSEK	2019	2018	2019	2018
Revenues by segment
Positioning	50,5	57,7	205,4	189,5
Imaging	0,5	0,0	0,0	0,6
Total revenues	51,0	57,7	205,4	190,1
Income by segment
Positioning	0,2	5,0	8,8	4,5
Imaging	-12,4	-1,7	-18,5	-3,7
Operating income	-12,1	3,3	-9,6	0,8

Segment reporting is based on the same accounting principles as applied in the consolidated financial statement for 2018.

	Q4	Q4	Full Year	Full Year
Revenue per gegraphical market	2019	2018	2019	2018
Americas	9,4	3,7	45,7	36,1
EMEA	25,8	39,3	99,2	109,2
APAC	15,8	14,7	60,5	44,8
Total	51,0	57,7	205,4	190,1

	Q4	Q4	Full Year	Full Year
Revenue per product category	2019	2018	2019	2018
Positioning products	38,5	46,1	156,9	145,1
HIT Laser	4,8	6,1	21,5	20,1
Life Cycle Business	5,0	2,3	17,3	8,1
Distribution	2,2	3,2	9,2	16,3
GEMini	0,5	0,0	0,5	0,5
Summa	51,0	57,7	205,4	190,1

Consolidated Balance Sheet in brief MSEK	31-12-2019	31-12-2018
Intangible assets	17,8	26,9
Tangible assets	2,7	1,3
Right-of-use assets	2,2	0,0
Long-term receivables	0,1	0,1
Deferred tax receivables	25,6	28,1
Total non-current assets	48,5	56,4
Inventory	15,0	11,7
Current receivables	64,9	69,2
Cash and liquid assets	29,5	9,3
Total current assets	109,3	90,2
Total assets	157,8	146,6
Equity	83,3	93,6
Lease liabilities	0,3	0,0
Other non-current liabilities	20,0	0,0
Total non-current liabilities	20,3	0,0
Current liabilities	54,2	53,0
Total equity and liabilities	157,8	146,6

Consolidated Cash Flow Statement in brief	Q4	Q4	Full Year	Full Year
MSEK	2019	2018	2019	2018
Operating income	-12,1	3,3	-9,6	0,8
Adjustment for non-cash items	13,9	2,7	21,6	8,0
Interests paid	-0,5	0,0	-1,7	-0,9
Cash flow from operating activites before working capital changes	1,3	6,0	10,2	7,9
Changes in working capital	7,3	-8,7	5,6	-17,5
Cash flow from operating activites	8,6	-2,6	15,8	-9,6
Investments	-3,0	-1,4	-10,6	-4,0
Cash flow from investing activities	-3,0	-1,4	-10,6	-4,0
New share issue	0,0	0,0	3,1	0,0
Premiums received for warrants	0,1	0,0	0,3	0,5
New borrowings/amortization of loan	-5,2	5,4	14,7	8,7
Amortization of lease liabilities	-0,7	0,0	-2,2	0,0
Cash flow from financing activities	-5,7	5,4	16,0	9,2
Net increase (decrease) in cash and cash equivalents	-0,1	1,4	21,1	-4,4
Cash and liquid assets at beginning of period	30,2	8,0	9,3	14,6
Exchange rate differences	-0,6	-0,1	-0,9	-0,9
Cash and liquid assets at end of period	29,5	9,3	29,5	9,3
Change in Group Equity	Q4	Q4	Full Year	Full Year
MSEK	2019	2018	2019	2018

Opening balance	96,5	69,2	93,6	71,4
Warrants program	-0,1	0,0	0,3	0,5
New share issue	0,0	0,0	3,1	0,0
Cost of Share Issue	0,0	0,0	-0,1	0,0
Equity part of convertible loan	0,0	0,0	0,0	0,1
Changes in the period	-0,1	0,0	3,3	0,6
Total comprehensive income for the period	-13,1	24,4	-13,6	21,7
Closing balance at end of period	83,3	93,6	83,3	93,6

Parent Company Income Statement in brief	Full Year	Full Year
MSEK	2019	2018
Revenues	16,2	18,9
Operating expenses	-19,3	-17,1
Operating income	-3,0	1,8
Financial items	-24,1	-7,4
Income before tax	-27,1	-5,6
Tax	0,6	2,2
Net income	-26,5	-3,4

Parent Company Balance Sheet in brief MSEK	31-12-2019	31-12-2018
Intangible assets	2,7	3,5
Financial assets	143,8	161,5
Deferred tax asset	2,8	2,2
Total non-current assets	149,3	167,3
Current receivables	2,5	1,2
Cash and liquid assets	1,1	0,5
Total assets	152,9	168,9
Equity and liabilities
Total equity	142,5	165,8
Total current liabilibites	10,4	3,2
Total equity and liabilities	152,9	168,9

Group Review per quarter

Income Statement	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	FY	FY
(MSEK)	2019	2019	2019	2019	2018	2018	2018	2018	2017	2017	2017	2017	2018	2017
Revenues	51,0	55,6	51,5	47,3	57,7	46,7	51,9	33,8	42,0	33,2	32,2	25,8	190,1	133,1
Cost of Sale	-20,4	-22,6	-22,2	-19,2	-23,1	-18,2	-24,6	-14,1	-16,8	-13,7	-13,6	-10,4	-80,0	-54,5
Gross Profit	30,6	32,9	29,3	28,1	34,6	28,5	27,3	19,7	25,2	19,5	18,6	15,4	110,1	78,6
Gross profit margin	60%	59%	57%	59%	60%	61%	53%	58%	60%	59%	58%	60%	58%	59%
Other external expenses	-14,0	-13,6	-14,7	-10,3	-12,5	-12,4	-11,0	-9,7	-10,8	-8,0	-8,9	-8,8	-45,6	-36,5
Personnel expenses	-16,9	-16,6	-15,6	-14,8	-16,3	-14,2	-14,5	-14,3	-13,9	-12,4	-13,2	-12,2	-59,3	-51,7
Capitalized development costs Depreciation	3,0 -13,7	1,5 -2,6	1,6 -2,4	0,6 -2,3	0,8 -2,6	0,9 -1,8	0,8 -1,1	0,9 -1,1	1,3 -0,9	1,1 -1,1	0,9 -1,4	1,1 -1,6	3,4 -6,6	4,4 -5,0
Other operating income/expenses	-1,2	0,1	1,2	0,0	-0,8	-0,7	0,4	-0,2	0,1	-0,4	-0,1	0,5	-1,3	0,1
Operating expenses	-42,8	-31,2	-29,8	-26,8	-31,3	-28,2	-25,4	-24,4	-24,1	-20,8	-22,7	-21,0	-109,4	-88,7
Operating income	-12,1	1,7	-0,6	1,3	3,3	0,3	1,9	-4,7	1,1	-1,4	-4,1	-5,6	0,7	-10,0
Financial items. net	-0,5	-0,5	-0,5	-0,2	0,0	0,0	-0,4	-0,2	-0,3	-0,3	-0,2	-0,2	-0,6	-0,9
Income before tax	-12,7	1,2	-1,1	1,1	3,3	0,3	1,5	-4,9	0,8	-1,7	-4,3	-5,8	0,1	-10,9
Tax	0,2	-2,6	0,2	-0,2	21,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	21,0	0,0
Net income	-12,5	-1,4	-0,9	0,9	24,3	0,3	1,5	-4,9	0,8	-1,7	-4,3	-5,8	21,1	-10,9
Balance Sheet	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	FY	FY
(MSEK)	2019	2019	2019	2019	2018	2018	2018	2018	2017	2017	2017	2017	2018	2017
Non-current assets	48,5	58,1	69,8	58,7	56,3	36,6	37,5	37,8	37,6	37,3	37,3	37,5	56,3	37,6
Current assets	109,3	118,5	108,4	99,2	90,3	80,7	86,5	73,5	80,4	72,7	69,9	62,3	90,3	80,4
Total assets	157,8	176,6	178,2	157,9	146,6	117,3	124,0	111,3	118,1	110,0	107,2	99,8	146,6	118,1
Equity	83,3	96,5	96,7	94,9	93,6	69,2	68,4	66,3	71,4	58,3	61,3	64,8	93,6	71,4
Non-current liabilities	20,3	20,1	32,7	23,1	0,0	0,0	0,0	0,0	0,3	0,3	12,3	12,4	0,0	0,3
Current liabilities Total equity and liabilities	54,2 157,8	60,0 176,6	48,8 178,2	39,8 157,9	53,0 146,6	48,1 117,3	55,6 124,0	45,0 111,3	46,4 118,1	51,4 110,0	33,6 107,2	22,6 99,8	53,0 146,6	46,4 118,1
Cash Flow Statement (MSEK)	Q4 2019	Q3 2019	Q2 2019	Q1 2019	Q4 2018	Q3 2018	Q2 2018	Q1 2018	Q4 2017	Q3 2017	Q2 2017	Q1 2017	FY 2018	FY 2017
Operating cashflow	8,6	-0,1	-3,7	11,0	-2,6	8,4	-3,7	-12,1	-0,7	10,0	-9,8	-3,5	-9,7	-4,0
Cashflow from investing activities	-3,0	-3,3	-3,4	-1,0	-1,4	-0,9	-0,8	-0,9	-1,4	-1,5	-1,2	-1,6	-4,0	-5,5
Cashflow from financing activities	-5,7	6,3	7,9	7,4	5,4	-5,5	5,2	4,1	-1,5	0,6	5,1	7,6	9,2	11,3
Totals	-0,1	2,9	0,7	17,4	1,4	2,0	0,6	-8,9	-3,6	9,1	-5,9	2,5	-4,5	1,8
Key Ratios	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	FY	FY
	2019	2019	2019	2019	2018	2018	2018	2018	2017	2017	2017	2017	2018	2017
Total order intake (MSEK) Quarterly change (%)	88,1 26%	69,7 9%	64,1 34%	47,8 -37%	75,6 18%	64,2 14%	56,4 11%	50,6 7%	47,5 -14%	55,5 13%	49,3 23%	40,2 -4%	246,8 n/a	192,5 n/a
Change compared to same period last year (%)	16%	9%	14%	-6%	59%	16%	14%	26%	13%	97%	62%	208%	28%	70%
Total Revenues (MSEK)	51,0	55,6	51,5	47,3	57,7	46,7	51,9	33,8	42,0	33,2	32,2	25,8	190,1	133,2
Quarterly change (%)	-8%	8%	9%	-18%	24%	-10%	54%	-20%	27%	3%	25%	-5%	n/a	n/a
Change compared to same period last year (%)	-12%	19%	-1%	40%	37%	41%	61%	31%	54%	48%	106%	49%	43%	61%
Gross Margin (percent of Revenues)	60%	59%	57%	59%	60%	61%	53%	58%	60%	59%	58%	60%	58%	59%
EBIT-margin (percent of Revenues)	-24%	3%	-1%	3%	6%	1%	4%	-14%	3%	-4%	-13%	-22%	0%	-8%
Profit margin (percent of Revenues)	-25%	-3%	-2%	2%	42%	1%	3%	-14%	2%	-5%	-13%	-22%	11%	-8%
Earnings per share before dilution (SEK)	-0,40	-0,05	-0,03	0,02	0,79	0,01	0,05	-0,16	0,03	-0,05	-0,14	-0,20	0,69	-0,37
Equity per share before dilution (SEK)	2,69	3,11	3,12	3,08	3,04	2,25	2,30	2,23	2,40	1,98	2,08	2,20	3,04	2,32
Equity per share after dilution (SEK)	2,68	3,10	3,11	3,06	3,02	2,21	2,16	2,10	2,27	1,87	1,97	2,07	3,02	2,29
Last paid share price (SEK)	44,50	34,00	36,60	34,70	25,80	27,50	31,20	30,40	28,30	33,90	22,60	14,80	25,80	28,30
Equity/asset ratio (percent)	53%	55%	54%	60%	64%	59%	55%	60%	60%	53%	57%	65%	64%	60%
Cash Balance (MSEK)	29,5	30,2	27,5	26,8	9,3	8,0	6,3	5,5	14,6	17,9	9,1	2,4	9,3	14,6
Number of employees at end of period	59	59	54	54	52	56	54	50	49	47	46	46	52	49
Average number of outstanding shares (millions)	30,9	30,9	30,9	30,8	30,8	30,8	30,8	30,8	29,8	29,5	29,5	29,5	30,8	29,6
Average number of diluted shares (millions)	31,0	31,0	31,0	31,0	31,0	31,3	31,3	31,3	31,2	31,2	31,1	31,3	31,0	31,3
Number of outstanding shares at end of period (millions) Number of outstanding warrants at end of period (millions)	31,0 0,4	31,0 0,4	31,0 0,4	30,8 0,5	30,8 0,5	30,8 0,5	30,8 0,5	30,8 0,5	30,8 0,5	29,5 1,7	29,5 1,8	29,5 1,8	30,8 0,5	30,8 1,7

NOTES

Note 1. Accounting principles

This interim report is prepared, for the Group, in accordance with IAS 34, RFR1 "Redovisning för koncerner" and the Annual Accounts Act and, for the Parent company, the Annual Accounts Act and RFR 2. The Group is applying IFRS 16 Leasing as of January 1, 2019, which is described here below. The applied accounting principles are in all other aspects consistent with what is stated in note 1 in the Financial Statements for 2018.

New standards as of January 1st, 2019

The Group is applying IFRS 16 Leasing as of January 1st, 2019.

IFRS 16 Leasing replaces IAS 17 Leases, IFRIC 4 Determining Whether an Arrangement Contains a Lease and related rules. Under the new standard, the lessee is required to recognise all contracts that meet the definition of a lease (except leases of 12 months or less and leases of low‐value assets) as a right‐of‐use asset and liability in the statement of financial position. Leases that currently comprise operating leases will subsequently be recognised in the balance sheet, which entails that the current operating expense, corresponding to the leasing charges for the period, will be replaced by amortisation and interest expense in the income statement. C‐RAD is applying the simplified transition method and will not recalculate the comparable figures. The main effect on C‐RADs financial statements refer to the accounting of rental contracts and leasing contracts for cars. The effect on the starting balance as per January 1st, 2019, was that a right‐of‐use asset and corresponding liability of approximately 3,4 Mkr was booked. EBITDA for 2019 is expected to be approximately 2 MSEK better than what would have been the case with the previous standard. Other effects will be that the cash flow from leasing contracts will be moved from cash flow from operating activites to cash flow from financing activities (depreciation and interest paid).

Other updated IFRS standards and interpretations from IFRIC have no impact on the Group or the Parent Company's results or financial position.

Note 2. Exchange rates

The financial statements are presented in SEK, the functional currency of C‐RAD. Sales and orders are largely generated in foreign currency, mainly EUR and USD and, in addition, foreign subsidiaries and associates are included in the consolidation. Orders, order back‐log and income statement are translated at the period‐average exchange rate while balance sheet items are translated at the closing rate. The average EUR rate during the fourth quarter of 2019 was 10.6 (10.3), while the average USD rate in the period was 9.5 (8.7). Closing rate for EUR was 10.4 (10.3) och USD 9.3 (9.0).

Note 3. Related party transactions

There were no transactions with closely related parties during the fourth quarter of 2019.

Note 4. Capitalized development costs

Development expenses that fulfil the recognition criteria in IAS38 are capitalized. Impairment test are performed quarterly. The progress of current development projects is reviewed on a regular basis.

Note 5. Deferred tax

Deferred tax assets are reviewed at the end of each reporting period and adjusted in line with the probable future taxable result.

Note 6. Contingent liabilities

Contingent liability of SEK 2 000 000 in the Parent company refer to guarantee committment for subsidiary.

Note 7. Pledges

The pledges refer to to a chattle mortgage for the Companys credit line with Nordea and Erik Penser Bank AB (security of 19.970.000 SEK).

Note 8. DEFINITIONS

C‐RAD AB is applying certain financial measurementsin the interim report that is not defined in IFRS. It is C‐RAD's opinion that these measurements give valuable information to investors and company management as they give a view of the Company's performance. These measurementshall not be considered a replacement for any financial measurement as defined by IFRS. As of the January 2019, the interim reports have been extended with one new financial measurement, EBITDA, which is calculated as per below.

EBITDA: operating profit before depreciation and amortization.

Comparison against IFRS

EBITDA excl IFRS 16‐adjustment ‐ Operating profit before amortization and deprecation, adjusted for effect from IFRS 16 Leasing to provide a figure comparative to previous year's EBITDA.

MSEK	Q4	Q4	Full Year	Full Year
	2019	2018	2019	2018
operating profit	‐12,1	3,3	‐9,6	0,8
Depreciation and amortization	13,7	2,6	21,0	6,6
Adjustment for IFRS 16 Leasing	‐1,0	0,0	‐2,6	0,0
EBITDA	0,5	5,9	8,7	7,4

Operating profit before items affecting comparablity ‐ during the fourt quarter of 2019, a one‐time write‐down of capitalized development and stock were made for the GEMini project. To provide a comparable view of the periods, we are presenting a key figure without this item affecting comparability.

MSEK	Q4	Q4	Full Year	Full Year
	2019	2018	2019	2018
operating profit	‐12,1	3,3	‐9,6	0,8
Depreciation and amortization, GEMini	11,6	0,0	11,6	0,0
Operating profit before items affecting comparability	‐0,5	3,3	2,0	0,8