CellaVision

Positive development with strong sales in the Americas

Organic sales growth: Q2, 2023: -15% (28)

EBITDA margin: Q2, 2023: 33% (33)

April 1-June 30, 2023

Net sales decreased by 8% to SEK 170 m (184). Sales decreased organically by 15% (+28), currency effect 7%. EBITDA amounted to SEK 56 m (61). EBITDA margin amounted to 33% (33). Profit before tax amounted to SEK 44 m (47). Earnings per share before and after dilution amounted to SEK 1.46 (1.56). Cash flow from operating activities amounted to SEK 28 m (40).

	Apr-Jun			Jan-Jun
(MSEK)	2023	2022	2023	2022	2022
Net sales	170	184	309	346	639
Gross profit	119	125	216	240	438
EBITDA	56	61	91	121	198
EBITDA margin, %	33	33	29	35	31
Profit/loss before tax	44	47	69	95	148
Earnings per share before and after dilution	1.46	1.56	2.26	3.17	4.96
Cash flow from operating activities	28	40	47	78	137
Total cash flow	-58	-36	-73	-21	-23
Equity ratio, %	73	70	73	70	72

CEO's comment

Simon Østergaard President & CEO The second quarter ended on a positive note for CellaVision. Our distribution partners confirmed that there is a fundamental and persistent need for our solutions, and demand has been strong in multiple markets.

The quarter has seen a gradual upturn as inventory levels have normalized at distribution partners in the Americas. Satisfying sales momentum is experienced across the region again, indicating recovery from the challenges previously faced. In EMEA and APAC high inventory levels at distribution partners following the macroeconomic situation continue to slow instrument sales, while sales of consumables were resilient in the face of market volatility.

Our gross margin has been positively impacted by the full impact of price increases initiated in the first quarter and favorable currency effects which both helped offset inflationary pressures. To ensure sustained growth, we focus on enhancing operational efficiency and manage the expense development while prioritizing longterm projects.

The second quarter in brief

Net sales for the Group were SEK 170 m (184) in the second quarter. Organic growth, adjusted for positive currency effects was negative 15 percent compared to the same quarter in 2022. EBITDA amounted to SEK 56 m (61) in the quarter, corresponding to an EBITDA margin of 33 percent (33).

In the Americas, sales increased to SEK 81 m (73) primarily driven by instrument sales. EMEA reported a decline with sales of SEK 76 m (83) against relatively tough comparable figures. High inventory levels and slower sales in key markets resulted in sales of SEK 13 m (28) in APAC. Operating cash flow was SEK 28 m (40). The Group's total cash flow for the quarter amounted to SEK -58 m (-36).

Progress on strategic direction

Compliance with the new In Vitro Diagnostic Regulation continues to drive our reagent sales as well as strong commitment from distribution partners. Our efforts to globalize our reagent offering has progressed well. In APAC, several product registrations for reagents are ongoing and we have received orders of small quantities from several countries in the region.

During the quarter, we successfully presented our first version of the Bone Marrow Application at the ISLH (International Society for Laboratory Hematology) conference in New Orleans, LA, receiving positive feedback from clinicians. Visitors showed strong interest for its high quality and efficient workflow which further expands our laboratory ecosystem. In the upcoming quarter, demonstrations will be performed at the at AACC (American Association for Clinical Chemistry), in Anaheim, CA. Clinical validations of the Bone Marrow Application will also be initiated in the upcoming quarter, aiming for CE-mark in the second half of 2024.

Simon Østergaard, President and CEO

Sales, earning and investments

Sales and exchange effects

Net sales for the Group's second quarter decreased by 8 percent to SEK 170 m (184), compared to the corresponding quarter last year. CellaVision invoices most of the sales in Euros and US dollars, which means that exchange rate fluctuations have an impact on the company's sales and earnings. Adjusted for positive currency effects of 7 percent, sales decreased organically by 15 percent compared to the strongest quarter in terms of sales in CellaVision's history, the second quarter of 2022.

Net sales amounted to SEK 309 m (346) for the six-month period. Adjusted for positive currency effects of 7 percent, sales decreased organically by 18 percent compared to the corresponding period in 2022.

Gross profit and gross margin

Gross profit decreased by 5 percent to SEK 119 m (125) during the second quarter, corresponding to a gross margin of 70 percent (68).

For the six-month period the gross profit decreased to SEK 216 m (240), corresponding to a gross margin of 70 percent (69).

The gross margin is affected by purchase prices for materials and components, customer pricing, the product mix, depreciation of capitalized development expenses as well as currency effects. In 2023, price increases towards customers, combined with a positive currency development for the Euro and US Dollar, have resulted in an improved gross margin compared to the previous year.

Depreciation of capitalized development expenses were on par with the corresponding quarter last year and amounted to SEK 2 m (2) for the first quarter and to SEK 4 m (4) for the sixmonth period which was on par with the corresponding period last year.

Operating expenses

Operating expenses for the second quarter was on par with the corresponding period last year SEK 73 m (72).

For the six-month period the operating expenses increased to SEK 144 m (138).

EBITDA and EBITDA margin

EBITDA decreased by 9 percent to SEK 56 m (61) during the second quarter, corresponding to an EBITDA margin of 33 percent (33).

For the six-month period EBITDA amounted to SEK 91 m (121), corresponding to an EBITDA margin of 29 percent (35).

Net financial items

The interest-bearing liabilities in the form of bank loans amounted to SEK 51 m (78). The second quarter's interest expenses from bank loans amounted to SEK 0.6 m (0.3). In addition to interest expense from bank loans, net financial income is attributable to foreign exchange gain/loss on acquisition loans in Euro and interest on leasing liability in accordance with IFRS 16.

For the six-month period interest expenses from bank loans amounted to SEK 1.2 m (0.6).

Investments

CellaVision continuously capitalizes expenses for product development. Capitalized development expenses increased during the quarter to SEK 14 m (11). The quarter's total research and development expenses, before capitalization, increased to SEK 35 m (32).

For the six-month period capitalized development expenses increased to SEK 28 m (21). Total research and development costs, before capitalization, increased to SEK 69 m (60) for the sixmonth period.

The increase is attributable to CellaVision's long-term product development goals. Most of the capitalized expenses are related to development of instruments and software applications.

Cash flow

The cash and cash equivalents at the end of the quarter amounted to SEK 35 m (110). In addition, CellaVision has an unutilized overdraft facility of SEK 30 m. The cash flow effect from change in working capital amounted to SEK -24 m (-14) for the quarter and is mainly explained by increased accounts receivable and increased tied-up capital in inventory.

The cash flow from operating activities decreased to SEK 28 m (40) for the quarter, which mainly is a consequence of the increase in working capital.

For the six-month period, the cash flow from operating activities amounted to SEK 47 m (78).

Cash flow from investing activities for the quarter amounted to SEK -21 m (-19) and is mainly related to capitalized development expenses and expansion of production capacity in France, in accordance with the period last year.

For the six-month period, the cash flow from investing activities amounted to SEK -44 m (-32).

Cash flow from financing activities for the quarter amounted to SEK -65 m (-58) and includes dividends to shareholders of SEK -54 m (-48).

For the six-month period, the cash flow from financing activities amounted to SEK -76 million (-68).

The total cash flow for the quarter amounted to SEK -58 m (-36) and for the six-month period amounted to SEK -73 m (-21).

Parent company

Apart from manufacturing of reagents, the group is in all material aspects represented by the operations in the parent company, the comments on the Group's result and financial position also refers to the parent company.

Development in the geographical markets

Americas: SEK 81 m (73)

In the Americas, sales increased by 12 percent to SEK 81 million compared to the corresponding quarter in 2022. The region is witnessing a renewed momentum, driven by a healthy demand for CellaVision products. Sales in the quarter increased as a result of normalized inventory levels at distribution partners. Macro trends indicate a growing demand for digital cell morphology due to the continued shortage of skilled laboratory personnel in the healthcare sector following the pandemic.

Instrument and software sales performed well, aided by favorable currency exchange rates. Large instruments remain the significant driver of sales. However, small instruments, which primarily cater to small and medium-sized laboratories in integrated health networks in the Americas, show growth potential with increasing sales.

Our marketing activities in North America remain robust, including activities related to the recently launched DIFF-Line™. In South America, active participation in symposiums and major clinical science meetings opened opportunities and long-term potential is seen, particularly in Brazil.

EMEA: SEK 76 m (83)

In EMEA, sales decreased by 8 percent to SEK 76 million compared to the corresponding quarter in 2022. Due to macroeconomic volatility, laboratories in many countries are hesitant to make capital investments, distribution partners continue to reduce safety stock and instrument sales slowed as a result.

Recurring sales, which are less affected by market uncertainty, showed steady growth. Reagent sales have been further boosted by compliance with the In Vitro Diagnostic Regulation introduced last year. While the sales trend was negative for instruments in the quarter, reagents displayed robust doubledigit growth.

Throughout the quarter, we intensified our sales and marketing activities, and deepened our collaboration with distribution partners across the region to secure sustained long-term growth. The successful pre-launch of a first version of the Bone Marrow Application at exhibitions and congresses generated significant interest from distribution partners and customers. The aim is to launch a CE-marked Bone Marrow Application in the second half of 2024.

APAC: SEK 13 m (28)

In APAC, sales decreased by 55 percent to SEK 13 million compared to the corresponding quarter in 2022. We are beginning to see signs of improvement as business activities gradually recover towards pre-pandemic levels. However, high inventory levels and slower sales in key markets negatively impacted sales for the region and, consequently, overall sales.

Our distribution partners indicate that interest in digital cell morphology is spreading across the region. The Chinese market stands out as the most price sensitive market in the region. To address these challenges, we have focused marketing efforts with distribution partners to accelerate our reagent business and are continually launching reagents in new markets to expand our presence.

Net sales per region, MSEK

Net sales per region (MSEK)	Apr-Jun 2023	Apr-Jun 2022	Growth %	Jan-Jun 2023	Jan-Jun 2022	Growth %
Americas	81	73	12%	140	155	-10%
EMEA	76	83	-8%	141	145	-3%
APAC	13	28	-55%	28	46	-39%
Total	170	184	-8%	309	346	-11%

Research and development

Improving healthcare through continuous innovation is a fundamental ambition of CellaVision. The company devotes considerable resources to research and development to lead technology transformation and offer innovative solutions that meet customer needs and improve laboratory workflows.

The most recent upgrade of CellaVisions blood analysis software has now undergone internal validation. The software includes, among other things, digitalization of the edge of the blood smear, the so-called feathered edge. Market introduction will begin after the summer when distributors also have validated the software.

During the quarter, the development of an analysis for bone marrow samples entered a new phase. The validation work has begun, and continuous feedback is obtained from a hospital in Europe that is evaluating an early version of the product.

The global supply situation that had a negative impact on component supply during parts of 2022 has now stabilized. Production of instruments and reagents was stable during the quarter and there were no significant component supply issues. However, we continue to be challenged by rising production costs driven by high inflation.

The CellaVision patent portfolio at the end of the period included 25 patented inventions and 114 granted patents.

Declaration by the Board of Directors and President/CEO

. The Board of Directors through the President/Chief Executive Officer certify that the interim report provides a true and fair view of the parent company´s and the Group´s business, financial position, performance and describes material risks and uncertainties, to which the parent company and the companies in the group are exposed.

Simon Østergaard President/CEO

Lund, July 20, 2023

Income statement in summary and consolidated statement of comprehensive income, Group

Amounts in ' 000 SEK	Note	Apr-Jun 2023	Apr-Jun 2022	Jan-Jun 2023	Jan-Jun 2022	Jan-Dec 2022
Net sales	4	169,668	183,575	308,764	345,997	639,340
Cost of goods sold		-50,834	-58,948	-93,070	-105,744	-201,023
Gross profit		118,834	124,626	215,694	240,253	438,317
Sales and marketing expenses		-34,019	-31,331	-66,941	-60,019	-117,962
Administration expenses		-17,884	-20,362	-36,653	-39,323	-73,536
R&D expenses		-20,737	-20,505	-40,870	-38,665	-88,553
Operating profit	7	46,194	52,428	71,230	102,245	158,266
Interest income and similar profit items		1,986	482	2,990	2,162	5,586
Interest expense and similar profit loss items		-3,843	-6,048	-5,523	-8,921	-15,423
Profit/loss before tax		44,338	46,862	68,697	95,486	148,429
Tax		-9,630	-9,611	-14,781	-19,831	-30,094
Profit/loss for the period		34,707	37,251	53,916	75,655	118,335
Other comprehensive income:
Components not to be reclassified to net profit:
Effect on revaluation of pensions		-138	-118	-178	-151	855
Tax effect on revaluation of pensions		34	30	46	39	-212
Sum of Components not to be reclassified to net profit:		-103	-89	-132	-112	642
Components to be reclassified to net profit:
Translation difference
Translation difference in the group		14,444	12,011	17,924	15,325	27,074
Sum of Components to be reclassified to net profit:		14,444	12,011	17,924	15,325	27,074
Sum of other comprehensive income:		14,341	11,922	17,792	15,213	27,716
Comprehensive result for the period		49,048	49,173	71,709	90,868	146,052

Per share data

Per share data	Apr-Jun 2023	Apr-Jun 2022	Jan-Jun 2023	Jan-Jun 2022	Jan-Dec 2022
Earnings per share, before and after dilution, SEK */	1.46	1.56	2.26	3.17	4.96
Equity per share, SEK	27.66	24.59	27.66	24.59	26.90
Number of shares outstanding	23,851,547	23,851,547	23,851,547	23,851,547	23,851,547
Average number of shares outstanding	23,851,547	23,851,547	23,851,547	23,851,547	23,851,547
Closing date stock price, SEK	183.60	338.00	183.60	338.00	229.00
Dividend per share, SEK	2.25	2.00	2.25	2.00	2.00

*/ Based on the profit/loss for the period divided by the average number of shares in issue

Quarterly earnings trend

Amounts in ' 000 SEK	Q2 2023	Q1 2023	Q4 2022	Q3 2022	Q2 2022	Q1 2022
Net sales	169,668	139,096	152,316	141,028	183,575	162,422
Gross profit	118,834	96,860	101,649	96,414	124,626	115,626
Gross margin in %	70	70	67	68	68	71
Expenses	-72,639	-71,824	-62,585	-79,458	-72,199	-65,809
EBITDA	56,032	34,549	48,397	29,451	61,477	59,039
Net profit	34,707	19,209	32,297	10,383	37,251	38,403
Cash flow	-58,027	-15,436	-8,023	6,093	-36,324	15,114

Balance sheet in summary, Group

Amounts in ' 000 SEK	Note	06/30/2023	06/30/2022	03/31/2023	12/31/2022
Assets
Intangible assets	5	429,496	379,601	410,342	399,229
Tangible assets	6	125,537	83,318	119,088	110,035
Financial assets		4,993	22,812	4,965	5,340
Inventory		156,932	123,255	152,031	142,571
Trade receivables		112,916	99,047	86,504	97,630
Other receivables		33,422	25,267	31,067	28,890
Cash and bank		34,897	110,033	93,074	108,053
Total assets		898,192	843,334	897,071	891,748

Equity and liabilities
Equity		659,671	586,445	664,289	641,628
Deferred tax liability		57,510	50,701	54,787	52,925
Other provisions		5,169	4,898	5,080	3,740
Long-term debt, interest-bearing		43,155	78,335	52,758	60,364
Short-term debt, interest-bearing		44,034	41,596	42,866	42,131
Short-term debt, non interest-bearing		45,869	47,800	39,212	40,252
Trade payables		40,953	30,759	36,102	47,864
Warranty provisions		1,833	2,800	1,978	2,843
Total equity and liabilities		898,192	843,334	897,071	891,748

Consolidated statement of changes in equity, Group

Amounts in ' 000 SEK	06/30/2023	06/30/2022	03/31/2023	12/31/2022
Balance at the beginning of the year	641,628	543,280	641,628	543,280
Dividend	-53,666	-47,703	0	-47,703
Net profit for the period	53,916	75,655	19,209	118,335
Comprehensive result for the period	17,792	15,213	3,452	27,716
Closing balance	659,671	586,445	664,289	641,628

Cash flow statement in summary, Group

Amounts in ' 000 SEK	Apr-Jun 2023	Apr-Jun 2022	Jan-Jun 2023	Jan-Jun 2022	Jan-Dec 2022
Result before taxes	44,338	46,862	68,697	95,486	148,429
Adjustment for items not included in cash flow	15,035	16,899	25,135	21,329	44,788
Income tax paid	-6,952	-9,038	-10,241	-18,219	-27,127
Cash flow from operating activities before changes in working capital	52,421	54,723	83,591	98,597	166,090
Changes in working capital	-23,995	-14,399	-36,576	-20,358	-28,804
Cash flow from operating activities	28,425	40,324	47,016	78,240	137,285
Capitalization of development costs	-14,229	-11,411	-27,781	-21,449	-45,751
Acquisitions/divestment of intangible non-current assets	-0	-36	0	-181	-201
Acquisitions/divestment of financial non-current assets	347	24	347	-27	-581
Acquisitions/divestment of tangible non-current assets	-7,522	-7,286	-16,996	-9,900	-23,482
Cash flow from investing activities	-21,404	-18,709	-44,430	-31,557	-70,014
Amortization of loans	-8,432	-7,346	-16,406	-14,855	-31,935
Amortization of leasing debts	-2,950	-2,890	-5,976	-5,334	-10,772
Dividend paid	-53,666	-47,703	-53,666	-47,703	-47,703
Cash flow from financing activities	-65,048	-57,939	-76,048	-67,892	-90,410
Total cash flow	-58,027	-36,324	-73,463	-21,209	-23,139
Liquid funds at beginning of period	93,074	147,006	108,053	130,286	130,286
Exchange rate fluctuations in liquid funds	-150	-650	307	956	906
Liquid funds at end of period	34,897	110,033	34,897	110,033	108,053

Disclosures regarding interest expense:

Interest expenses for Jan-Jun 2023 amount to SEK 1 599 k (1 036) whereof SEK 383 k (449) is attributable to leasing in accordance with IFRS 16.

Income statement in summary and consolidated statement of comprehensive income, Parent company

Amounts in ' 000 SEK	Apr-Jun 2023	Apr-Jun 2022	Jan-Jun 2023	Jan-Jun 2022	Jan-Dec 2022
Net sales	129,735	154,600	232,789	284,726	517,207
Cost of goods sold	-27,934	-37,619	-47,929	-65,932	-121,438
Gross profit	101,801	116,981	184,860	218,794	395,769

Sales and marketing expenses	-26,110	-24,137	-48,478	-44,610	-87,311
Administration expenses	-14,252	-16,928	-29,481	-32,549	-59,976
R&D expenses	-33,462	-30,640	-65,578	-57,545	-126,842
Operating profit	27,978	45,277	41,323	84,091	121,640
Interest income and financial exchange gains	1,884	448	2,861	2,095	4,876
Interest expense and financial exchange losses	-3,525	-5,656	-4,866	-8,148	-13,838
Profit before income tax	26,338	40,069	39,318	78,037	112,678
Taxes	-5,489	-8,441	-8,163	-16,263	-23,575
Net profit	20,849	31,628	31,155	61,775	89,103

Statement of Comprehensive Income	Apr-Jun 2023	Apr-Jun 2022	Jan-Jun 2023	Jan-Jun 2022	Jan-Dec 2022
Net profit for the period	20,849	31,628	31,155	61,775	89,103

Other comprehensive income	0	0	0	0	0

Sum of other comprehensive income	0	0	0	0	0

Comprehensive profit for the period	20,849	31,628	31,155	61,775	89,103

Balance sheet in summary, Parent company

Amounts in ' 000 SEK	06/30/2023	06/30/2022	03/31/2023	12/31/2022
Assets
Intangible assets	31,430	35,358	32,178	32,926
Tangible assets	5,918	5,526	5,882	4,869
Deferred tax assets	733	552	733	733
Long term receivables from group companies	32,722	10,680	32,137	22,257
Financial assets	263,523	282,360	263,523	263,907
Inventory	116,278	92,404	116,403	108,240
Trade receivables	76,340	78,880	59,849	71,485
Receivables from group companies	2,653	2,390	2,861	1,169
Other receivables	29,466	20,792	26,332	22,889
Cash and bank	29,510	95,203	79,912	93,903
Total assets	588,573	624,144	619,810	622,379
Equity and liabilities
Equity	455,961	451,144	488,779	478,472
Other provisions	718	1,343	718	718
Long-term debt, interest-bearing	12,721	39,438	19,605	26,529
Short-term debt, interest-bearing	29,885	27,351	28,709	28,373
Short-term debt, non interest-bearing	32,328	35,875	29,907	27,584
Trade payables	25,935	24,280	23,231	34,148
Liabilities to group companies	29,192	41,912	26,884	23,712
Warranty provisions	1,833	2,800	1,978	2,843
Total equity and liabilities	588,573	624,144	619,810	622,379

NOTE 1. ACCOUNTING POLICIES

The Group applies International Financial Reporting Standards (IFRS), as adopted by the EU. This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, the Annual Accounts Act and the Nasdaq Stockholm Rule Book for Issuers. Disclosures in accordance with IAS 34 p. 16A appears not only in the financial statements and their accompanying notes but also in other parts of the interim report. The parent company applies the Annual Accounts Act and the Swedish Financial Reporting Board recommendation RFR 2 Accounting for Legal Entities. The accounting policies and calculation methods applied are consistent with those described in the Annual and Sustainability Report for 2022.

NOTE 2. SEGMENT REPORTING

CellaVision's operations comprise only one operating segment: automated microscopy systems and reagents in the field of hematology. Therefore, references are made to the Group's consolidated income statement and balance sheet regarding operating segment reporting.

NOTE 4. ALLOCATION OF SALES

NOTE 3. RISKS AND UNCERTAINTIES

CellaVision is exposed to several risks, which may impact the Group's development to a greater or lesser extent. Reduced demand, currency fluctuations, production disruptions and restrictions related to COVID-19 are both risks and uncertainties to varying degrees. For a more detailed description of the risks and uncertainties facing CellaVision, please refer to the risk analysis on pages 68-71 and Note A2 and A5 in the Annual and Sustainability Report for 2022.

				Apr-Jun 2023				Apr-Jun 2022
Amounts in ' 000 SEK	Instruments	Reagents	Software & Other	Total	Instruments	Reagents	Software & Other	Total
Americas	53,204	671	27,412	81,287	44,618	1,073	27,043	72,734
EMEA	31,975	32,260	11,591	75,826	41,295	22,142	19,202	82,639
APAC	7,175	1,776	3,605	12,556	20,658	906	6,638	28,202
Total	92,354	34,707	42,607	169,668	106,571	24,121	52,883	183,575

				Jan-Jun 2023				Jan-Jun 2022
Amounts in ' 000 SEK	Instruments	Reagents	Software & Other	Total	Instruments	Reagents	Software & Other	Total
Americas	84,540	935	54,335	139,810	93,675	1,121	60,176	154,972
EMEA	53,964	61,023	25,804	140,791	64,387	46,300	34,208	144,895
APAC	19,511	2,848	5,805	28,164	33,772	1,608	10,751	46,130
Total	158,015	64,806	85,944	308,764	191,834	49,029	105,135	345,997

Other refers to spare parts and consumables.

NOTE 5. INTANGIBLE ASSETS

Amounts in ' 000 SEK	06/30/2023	06/30/2022
Capitalised expenditure for development	187,453	144,535
Goodwill	131,541	119,141
Trademarks, customer relationships and other intangible assets	110,502	115,925
Total intangible assets	429,496	379,601

NOTE 7. EMPLOYEES

Average number of employees	Apr-Jun 2023	Apr-Jun 2022
Permanent employees	237	219
Temporary employees	18	23
Total	255	242

The average number of employees is calculated as an average of the number of employees at the beginning and end of the period. Temporary employees include all employees on a temporary contract with a defined end date, this includes paid interns and apprentices.

NOTE 6. TANGIBLE FIXED ASSETS

Amounts in ' 000 SEK	06/30/2023	06/30/2022
Right of use assets
Land and buildings	32,789	40,032
Machinery, equipment	3,122	2,538
Total right of use assets	35,911	42,570

Tangible fixed assets that are not right of use assets
Land and buildings	67,146	21,284
Machinery, equipment	22,480	19,463

Total tangible fixed assets that are not right of use assets	89,626	40,748

Total tangible fixed assets	125,537	83,318

The tangible fixed assets amounted to SEK 126 m on the balance sheet date. The majority of the right of use assets consists of leases for office premises. For all leases for which the Group is lessee (which are not short term leases or low value assets), the Group recognizes a right of use asset and a lease liability.

When valuating the right of use asset, the acquisition method is used, i.e the right of use asset is calculated at acquisition cost, adjusted for any revaluation of the lease liability less depreciation.

The right of use asset is reported as a tangible fixed asset, while leasing liability is reported separately in the Group's statement of financial position as long-term debt, interest-bearing and short-term debt, interest-bearing.

NOTE 8. SIGNIFICANT EVENTS AFTER THE PERIOD CLOSE

No significant events have occurred after the period close.

The company presents certain financial measures in the interim report which are not defined according to IFRS. The company considers these measures to provide valuable supplementary information for investors and the company's management as they enable the assessment of relevant trends. CellaVision's definitions of these measures may differ from other companies' definitions of the same terms. These financial measures should therefore be seen as a supplement rather than as a replacement for measures defined according

to IFRS. Definitions of measures which are not defined according to IFRS and which are not mentioned elsewhere in the interim report are presented below. Reconciliation of these measures is shown in the tables below.

Currency effect. Exchange rate effects on sales growth for the period.

Equity/assets ratio. Shareholders' equity including noncontrolling interests as a percentage of total assets. EBITDA. Overall financial performance before interest, taxesdepreciation and amortization. Gross margin. Gross profit as a percentage of net sales. Gross profit. Net sales less cost of goods sold. Operating margin (EBIT), Operating profit (EBIT) as a percentage of net sales for the period. Operating profit (EBIT). Earnings before interest and tax.

Equity-asset ratio

KSEK	06/30/2023	06/30/2022	12/31/2022
Equity	659,671	586,445	641,628
Balance sheet total	898,192	843,334	891,748
Equity ratio	73%	70%	72%

Gross margin

KSEK	Apr-Jun 2023	Apr-Jun 2022	Jan-Jun 2023	Jan-Jun 2022	Jan-Dec 2022
Net sales	169,668	183,575	308,764	345,997	639,340
Gross profit	118,834	124,626	215,694	240,253	438,317
Gross margin	70%	68%	70%	69%	69%

Operating margin

KSEK	Apr-Jun 2023	Apr-Jun 2022	Jan-Jun 2023	Jan-Jun 2022	Jan-Dec 2022
Net sales	169,668	183,575	308,764	345,997	639,340
Operating profit	46,194	52,428	71,230	102,245	158,266
Operating margin	27%	29%	23%	30%	25%

EBITDA

KSEK	Apr-Jun 2023	Apr-Jun 2022	Jan-Jun 2023	Jan-Jun 2022	Jan-Dec 2022
Operating profit	46,194	52,428	71,230	102,245	158,266
Depreciation/write-down	9,838	9,049	19,351	18,270	40,097
EBITDA	56,032	61,477	90,582	120,515	198,363

Net sales

	Apr-Jun 2023	Apr-Jun 2023	Apr-Jun 2022	Apr-Jun 2022
	(%)	KSEK	(%)	KSEK
Last period		183,575		135,451
Organic growth	-15%	-27,264	28%	37,729
Currency effect	7%	13,357	8%	10,395
Structural growth	0%	0	0%	0
Current period	-8%	169,668	36%	183,575

Questions concerning the report

Publication

This information constitutes information that CellaVision AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication at 7:20 a.m. CEST on July 20, 2023.

CellaVision is listed on the Nasdaq Stockholm, Mid Cap list. The company is traded under the ticker symbol CEVI and ISIN code SE0000683484

Conference

In connection with the release of the interim report analysts, investors and media are invited to a telephone conference and audio webcast on July 20, at 11:00 CEST where Simon Østergaard, President & CEO, will present and comment the report. The presentation will be in English via a conference call or audio webcast:

To participate via webcast, use the link below. ir.financialhearings.com/cellavision-q2-2023

To participate via conference call, register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference. conference.financialhearings.com/teleconference/?id=200866

No pre-registration is required. Please dial in 5-10 minutes prior to the scheduled start time to facilitate a timely start.

Magnus Blixt CFO Phone: +46 46 460 16 46 [email protected]

Simon Østergaard President & CEO Phone: +46 46 460 16 23

[email protected]

Financial calendar 2023

Interim Report January-March Annual General Meeting 4 May	5 May	Interim Report January-June 20 July	Interim Report January-September 25 October	Year-end Report 2023 7 February, 2024

This is CellaVision

About us

CellaVision is an innovative, global medical technology company that develops and sells its own leading solutions for routine analysis of blood and other body fluids in health care services. The products replace manual laboratory work, and secure and support effective workflows and skills development within and between hospitals. The company has leading-edge expertise in sample preparation, image analysis, artificial intelligence and automated microscopy. Sales are via global partners with support from the parent company in Lund, Sweden and by the company´s 16 local market support organizations covering more than 40 countries.

Our strategic ambition: The power of focus

Our strategic ambition is to digitalize and improve microscopy workflows to provide diagnostic certainty in the medical labs of the world. Our strategy is supported by our organization, processes and culture. The strategy rests on five strategic pillars:

1. Maximize our leading position in large laboratories
1. Accelerate the worldwide adoption of the DC-1
1. Accelerate our global leadership in reagents
1. Expand into specialized microscopy analyses
1. Explore new areas of analytics with innovation

Financial ambition

CellaVision's objective is to create a global standard for digital microscopy. The objective is broken down into important financial targets:

• Sales growth

Increase sales over an economic cycle by an average of around 15 percent per year.

• Profitability

The EBITDA margin is to exceed 30 percent over an economic cycle.

Mission

Our mission is to advance laboratory workflow and diagnostic certainty through intelligent microscopy

Our mission defines what our line of business is and what purpose we serve. Our tools for automating cell classification and diagnostic certainty include analyzers, staining reagents, smearing and staining devices and software. We are at the forefront of advancing laboratory technology, using deep learning and artificial intelligence.

Vision

Our vision is to elevate healthcare through the evolution of microscopy

Our vision fulfills our values and provide the big picture of why we are here. Our customers work in laboratories. We provide microscopes with intelligence to make lab work easier and more efficient. Because the faster a blood sample can be correctly analyzed, the faster a patient can get a diagnosis and treatment.