Continuous expansion into new markets

High rate of innovation for continued digitization of healthcare

Year-end bulletin January-December 2017

Stable quarter with continued strategic initiatives

October 1 - December 31, 2017

Net sales increased by 5 percent to SEK 76.1 million (72.8).
Organic growth was 6 % (14).
Operating profit increased to SEK 21.7 million (21.6).
The operating margin was 28.5 % (29.8).
Profit before tax increased to SEK 21.7 million (20.8).
Earnings per share were SEK 0.73 (0.75)
Cash flow was SEK 25.5 million (27.4).

January 1 - December 31, 2017

Net sales increased by 17 percent to SEK 309.3 million (265.0).
Organic growth was 16 % (9).
Operating profit increased by 23 % to SEK 90.9 million (74.2).
The operating margin increased to 29.4% (28.0).
Profit before tax increased to SEK 90.3 million (75.8).
Earnings per share increased to SEK 2.92 (2.51).
Cash flow before dividend decreased to SEK 57.9 million (61.5).
The Board of Directors proposes a dividend of SEK 1.50 per share for 2017 (1.50).

Key Ratios

(MSEK)	Oct-Dec 2017	Oct-Dec 2016	Full year 2017	Full year 2016
Net sales	76.1	72.8	309.3	265.0
Gross profit	55.4	52.8	223.2	188.9
EBITDA	23.9	23.9	99.3	82.4
Operating profit	21.7	21.6	90.9	74.2
Operating margin, %	28.5	29.8	29.4	28.0
Profit/loss before tax	21.7	20.8	90.3	75.8
Cash flow for the period	25.5	27.4	22.1	25.8
Equity ratio, %	80.1	80.4	80.1	80.4

Net Sales, Q4 SEK 76.1 m (72.8)

Operating Profit, Q4 SEK 21.7 m (21.6)

Operating Margin, Q4 28.5% (29.8)

CEO's comments

The fourth quarter of 2017 was CellaVision's third best quarter ever, with sales amounting to SEK 76.1 million (72.8), corresponding to growth of five percent and with a negative exchange rate impact of one percent. As a result, organic growth in the quarter amounted to six percent. The operating profit was SEK 21.7 million (21.6), equivalent to an operating margin of 28.5 percent (29.8). Despite major investments in innovation and geographical expansion we have retained our sound operating margin.

For the full year, sales increased by 17 percent to SEK 309.3 million (265.0) and the operating profit was SEK 90.9 million (74.2), corresponding to an operating margin of 29.4 percent (28.0). Exchange rate impact was one percent resulting in an organic growth for the full year amounting to 16 percent. CellaVision's indirect sales model implies that we have unevenly distributed sales with a large variation between quarters.

Market development

Sales in the Americas were SEK 38.6 million (40.1). The comparatively weak development is partly explained by strong comparative figures, partly by some build-up of inventories from previous quarters. However, the number of customer installations and CellaVision's end customer penetration continued to grow at a steady rate, and sales growth for the full year of 2017 was 24 percent.

EMEA reported a weak fourth quarter, with sales amounting to SEK 19.3 million (26.7). The 2017 full year was also weak, with sales of SEK 81.8 million (83.3). We are not content with EMEA's development in recent years and have therefore considerably speeded up establishment of our own organizations for local market support in several countries in EMEA. Market penetration is a long-term endeavor and we expect to see the first positive effects of this in 2018.

APAC reported a strong last quarter in 2017, with growth exceeding 200 percent. This is a result of strong sales, above all in Japan and China. For the full year of 2017, growth was 27 percent. The local market support organizations established in South Korea and Australia in late 2016 are now fully operational.

New technology platform preparing for launch

The new technology platform means that CellaVision can offer a cost-effective solution in digital morphology for small and mid-size hematology laboratories. The new product will give the end customer retained quality of analysis and network connectivity but a lower level of automatization than the offer to large laboratories.

This means that CellaVision will be able to offer package solutions for laboratory chains that include both large central laboratories and smaller satellite laboratories in their operations.

This will enable us to achieve further interim goals in our vision of replacing the use of traditional microscopes in hematology laboratories.

CellaVision® Advanced RBC Application

The CellaVision® Advanced RBC Application, a software application that speeds up and simplifies morphological assessment of red blood cells, was approved by the US regulatory authority, the FDA, in August 2017 and during the quarter was launched commercially by our various distribution partners in the USA.

Continued offensive innovation initiatives and geographical expansion

We continuously invest in innovation and geographic expansion in order to generate high sales and profit growth.

Innovation is a key strategy for future growth and to enable us to commercialize more of our many ideas we will further increase our investments in research and development. By strengthening our development organization we will create new growth opportunities, primarily in digital image analysis.

CellaVision is continuing to establish local organizations for market support in priority markets, which in 2017 included Brazil, France, the German-speaking markets in EMEA and the United Kingdom. We will continue the offensive work that began in 2016 with further establishments in 2018 in accordance with our long-term strategy.

Zlatko Rihter, President and CEO 16% full year organic growth

Organic growth of 6% for the quarter

Sales in the Americas were SEK 38.6 million (40.1) in the quarter

Weaker quarter for EMEA with sales of SEK 19.3 million (26.7)

Strong quarter for APAC with growth exceeding 200%

Continued focus on completing the product project for small and mid-size laboratories

Sales, performance and investments

October 1–December 31

Net sales for the Group in the fourth quarter were SEK 76.1 million (72.8), an increase of five percent compared with the corresponding period in 2016. CellaVision's sales often fluctuate between different quarters, both for individual regions and for the Group as a whole.

CellaVision invoices more than 90 percent of its net sales in euro or US dollars, which means that exchange rate fluctuations have a major impact on the company's reported net sales and earnings. Adjusted for negative exchange rate effects of one percent, net sales increased by 6 percent compared with the corresponding quarter in 2016.

CellaVision often has major variations in gross margins between individual quarters, which is due to exchange rate fluctuations and product mix. The gross margin for the quarter increased marginally to 72.8 percent (72.5).

Total operating expenses in the fourth quarter were SEK 33.7 million (31.1). The increase is mainly due to the expansion of the company's market presence to new countries, as well as increased marketing costs.

The cost increase in administration refers to IT, recruitment and provisions for incentive program. CellaVision is running several development projects aimed at strengthening the company's product offer. Total research and development costs amounted to SEK 13.6 million (13.7), of which SEK 7.6 million (6.1) has been capitalized. The main part of the capitalized costs are related to the new technology platform for analyzers intended for small and mid-size laboratories.

Operating profit for the quarter was SEK 21.7 million (21.6), with an operating margin of 28.5 percent (29.8).

CellaVision has no interest-bearing liabilities. Net financial income is mainly attributable to exchange rate gains/losses on intra-group transactions.

The Group's cash and cash equivalents at the close of the quarter increased to SEK 154.5 million (132.5). Total cash flow for the quarter was SEK 25.5 million (27.4).

Net sales increased by 5% to SEK 76.1 million (72.8)

Adjusted for exchange rate effects, organic sales increased by 6%

The operating margin for the quarter was 28.5% (29.8)

Total cash flow for the quarter was SEK 25.5 million (27.4)

Development in geographical markets

Americas: SEK 38.6 million (40.1)

Sales in the Americas decreased in the quarter by four percent to SEK 38.6 million (40.1) compared with the strong performance in the human healthcare market in the same period of the previous year. The full year sales increase in the region was 24 percent, driven by continued strong penetration in the USA and Canada.

CellaVision has conducted several activities in the past quarter, including training sessions for both end users and distributor sales organizations. The company visited a congress and a number of local exhibitions during the period. In the closing quarter of the year focus has also been on becoming fully operationally established in Brazil by creating close contacts with the company's various distribution partners' local teams.

During the quarter the company received its first order for the CellaVision® Advanced RBC Application, which was approved for sale by the FDA in the third quarter of 2017.

EMEA: SEK 19.3 million (26.7)

Sales in EMEA decreased in the quarter by 27 percent to SEK 19.3 million (26.7) compared with the same period in the previous year. For the full year, net sales in the region decreased by two percent.

The work of developing local contacts with both distribution partners and end customers continued during the quarter in the markets in which CellaVision established local organizations for market support in 2017. Several training sessions, presentations and demonstrations were carried out around Europe and in the Middle East.

In addition, the company has conducted a number of marketing activities during the quarter, including both exhibitions and congress visits.

For EMEA the focus of the closing quarter has been on getting the latest establishments with local market support staff located in Europe's German-speaking markets and in the United Kingdom/Ireland fully operational by creating close contacts with the company's various distribution partners' local teams.

APAC: SEK 18.2 million (6.0)

In APAC sales increased by 204 percent to SEK 18.2 million (6.0) compared with the weak fourth quarter in the previous year. Many markets in the region contributed to this, but it was mainly Japan and China that showed really strong demand. For the full year, net sales in the region increased by 27 percent.

At the end of the quarter New South Wales, Australia, announced a large procurement. Apart from the traditional cell counters, digital morphology is now also in demand. This means a breakthrough for CellaVision, which is a world leader in digital morphology.

At a first meeting in Vietnam CellaVision visited hospital laboratories and met the company's various distribution partners and sub-distributors. On that occasion the company provided training for the groups mentioned above in CellaVision's products and digital workflows.

CellaVision has a continued focus on the largest market in the region, China, where the company's market support employees participated in several conferences with presentations. A number of end user training sessions were also conducted around the country.

Net sales in the Americas decreased somewhat in the quarter, to SEK 38.6 million (40.1)

The full year increase for the Americas was 24%

A weaker quarter for EMEA, with net sales amounting to SEK 19.3 million (26.7)

APAC's net sales increased by more than 200%, to SEK 18.2 million (6.0) during the quarter

Other information

Research and development

CellaVision is continually conducting a number of development projects, aimed at strengthening the offer to the company's customers in the field of hematology. The main focus continues to be on developing a technology platform for small and mid-size laboratories with the planned launch in the second half of 2018.

CellaVision works continually with respect to several different patent families and during the period CellaVision was awarded one new patent. The patent gives extended protection in the USA for the robot that constitutes an essential part of CellaVision's system. The company reported on a first patent for the invention in the USA, with a narrower scope of protection, in the previous interim report. The robot is unique in as far as it can make movements with a large stroke length without compromising on the requirement to make small movements with high precision. At the close of the fourth quarter CellaVision's patent portfolio contained 23 patented inventions and 59 registered patents.

The Group continuously capitalizes expenditure on new development. Capitalized costs for development projects were SEK 7.6 million for the quarter (6.1). Total research and development costs, before capitalization, amounted to SEK 13.6 million (13.7).

Personnel

The number of employees of the Group, restated as fulltime positions, was 99 (84) at the year-end. Of these, 67 were men (58) and 32 women (26). During the quarter the company continued its endeavors to increase the number of employees in research and development and geographical expansion in line with the company's longterm strategy.

Information concerning risks and uncertainties

Reduced demand and changes in exchange rates constitute uncertainties but not material risks. For a more detailed description of the risks and uncertainties facing CellaVision, please refer to the risk analysis in the Annual Report for 2016, Notes 2 and 5.

Seasonal variations

CellaVision has an unevenly distributed order flow over the year and the variation in order volumes in individual quarters may be great in the different geographical regions.

Dividend

CellaVision proposes to the Annual General Meeting a dividend of SEK 1.50 per share for 2017 (1.50). The company's dividend policy means that the dividend shall correspond to 30 to 50 percent of net earnings, but always take into account the Company's and the Group's financial position, capital structure, acquisition requirements and long-term financing requirements.

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. 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 report for 2016. New standards and interpretations that came into force on January 1, 2017 have not had any impact on CellaVision's financial reporting for the interim report period.

As of January 1, 2018, CellaVision applies IFRS 9 and IFRS 15. IFRS 15, Revenue from Contracts with Customers, implies a new revenue model (five-step model) based on when the control of a Goods or Service is transferred to the Customer.

IFRS 9 involves changes in how financial assets are classified and valued, introduction of a write-down model based on expected loan losses instead of occurred losses and changes in principles for hedge accounting with the aim to simplify and increase the coherence with companies' internal risk management strategies.

The Group's work in 2017 has shown that the effects of implementing IFRS 15 and IFRS 9 will not have a material effect on the Group's financial statements when applied for the first time.

Financial instruments

Derivatives held for foreign currency hedging are valued at level 2, financial instruments where fair value is determined on the basis of valuation models based on other observable data for the asset or liability than listed prices included in level 1, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Currency forwards are measured on the basis of observable information referring to exchange rates on the balance sheet date and market rates for remaining maturities. The value of the currency forwards is recorded as 'Other receivables' on the consolidated balance sheet. The value of CellaVision's derivatives was SEK -0.2 million (1.1) at December 31, 2017.

Segment reporting

CellaVision's operations only comprise one operating segment; automated microscopy systems in the field of hematology, and therefore reference is made to the income statement and balance sheet regarding operating segment reporting.

Review

This report has not been reviewed by the company´s auditors

Intensified work on the company's new technology platform for small and mid-size laboratories ahead of launch

Capitalized development costs for the quarter were SEK 7.6 million (6.1).

Number of employees 99 (84)

The Nomination Committee for the Annual General Meeting in 2018

In accordance with a resolution of the 2017 Annual General Meeting the Nomination Committee shall consist of the Chairman of the Board and one representative for each of the four largest shareholders in terms of voting rights at the end of September 2017.

Ahead of the 2018 Annual General Meeting the Nomination Committee consists of, Chairman of the Nomination Committee Christer Fåhraeus, (appointed by Christer Fåhraeus and companies), Bo Lundgren (appointed by Swedbank Robur Funds), Caroline Sjösten (appointed by Skandia Liv), Joel Eklund (appointed by Fosielund Holding AB) and the Chairman of the Board Sören Mellstig.

Shareholders wishing to submit proposals to the Nomination Committee can send an email to [email protected], or ordinary mail to: The Nomination Committee, CellaVision AB, Mobilvägen 12, 223 62 Lund.

Annual General Meeting 2018

CellaVision's Annual General Meeting in 2018 will be held in Lund at three o´clock CET, on May 4, 2018. Shareholders wishing to have matters considered at the Annual General Meeting can send a written request by email to [email protected] or ordinary mail addressed to: The Board of Directors, CellaVision AB, Mobilvägen 12, 223 62 Lund. The request must have been received at the latest seven weeks before the Annual General Meeting in order to be included in the notice to attend and thus the agenda of the Annual General Meeting.

Statement

The Board of Directors and the Presisdent/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 and performance and describes material risks and uncertainties to which the parent company and the companies in the group are exposed.

Lund , February 9 2018

Sören Mellstig Christer Fåhraeus Åsa Hedin Chairman of the Board Member of the Board Member of the Board

Roger Johanson Torbjörn Kronander Anna Malm Bernsten

Niklas Prager Zlatko Rihter Member of the Board President/CEO

Member of the Board Member of the Board Member of the Board

Consolidated Income Statement in Summary

All amount in ' 000 SEK	Oct-Dec 2017	Oct-Dec 2016	Jan-Dec 2017	Jan-Dec 2016
Net sales	76,130	72,761	309,312	265,038
Cost of goods sold	-20,726	-19,988	-86,092	-76,102
Gross profit	55,404	52,773	223,220	188,936
Sales and marketing expenses	-18,344	-15,249	-69,977	-56,859
Administration expenses	-9,370	-8,294	-35,565	-28,670
R&D expenses	-6,014	-7,582	-26,786	-29,239
Operating profit	21,676	21,648	90,892	74,168
Interest income and financial exchange rate gains	460	357	1,859	3,632
Interest expense and financial exchange rate losses	-403	-1,238	-2,408	-2,025
Profit/loss before tax	21,733	20,767	90,343	75,775
Tax	-4,405	-2,943	-20,620	-15,975
Profit/loss for the period	17,328	17,824	69,723	59,800
Other comprehensive income:
Components not to be reclassified to net profit:	0	0	0	0
Components to be reclassified to net profit:
a) Financial assets at fair value
Reclassified to operating result	-261	-278	3,240	-249
Revaluation of financial assets	-3,353	812	-751	-2,721
Income tax relating to financial assets	794	-124	-549	653

b)Translation difference
Translation difference in the group	-107	1,506	-1,210	951
Sum of Components to be reclassified to net profit:	-2,927	1,916	730	-1,366
Sum of other comprehensive income:	-2,927	1,916	730	-1,366

Per share data	Oct-Dec 2017	Oct-Dec 2016	Jan-Dec 2017	Jan-Dec 2016
Earnings per share, SEK */	0.73	0.75	2.92	2.51
Equity per share, SEK	10.10	8.64	10.10	8.64
Number of shares outstanding	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
Stock exchange rate, SEK	143.75	86.00	143.75	86.00
Dividend per share	0.00	0.00	1.50	1.50

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

Quarterly earnings trend

All amount in ' 000 SEK	Q4 2017	Q3 2017	Q2 2017	Q1 2017	Q4 2016	Q3 2016
Net sales	76,130	61,348	78,686	93,148	72,761	68,304
Gross profit	55,404	43,165	56,647	68,004	52,773	47,868
Gross margin in %	72.8	70.4	72.0	73.0	72.5	70.1
Expenses	-33,728	-32,918	-32,020	-33,662	-31,125	-28,411
Operating profit	21,676	10,247	24,627	34,342	21,648	19,457
Net profit	17,328	7,713	19,392	25,290	17,824	15,161
Cash flow	25,518	5,613	-24,607	15,568	27,405	7,365

Consolidated Balance Sheet in Summary

All amount in ' 000 SEK	12/31/2017	12/31/2016
Assets
Intangible assets	53,731	34,724
Tangible assets	4,814	3,270
Deferred tax assets	0	0
Financial assets	2,617	2,025
Inventory	28,754	36,275
Trade receivables	43,157	33,238
Other receivables	12,978	14,459
Cash and bank	154,546	132,454
Total assets	300,597	256,445

Equity and liabilities

Total equity and liabilities	300,597	256,445
Warranty provisions	1,428	1,248
Trade payables	21,490	16,451
Short term debt	28,208	31,320
Other Provisions	2,401	0
Deferred tax liability	6,219	1,251
Equity	240,851	206,175

Consolidated statements of changes in equity

All amount in ' 000 SEK	12/31/2017	12/31/2016
Balance at the beginning of the year	206,175	183,518
Dividend	-35,777	-35,777
Net profit for the year	69,723	59,800
Comprehensive result for the period	730	-1,366
Balance at the end of the year	240,851	206,175

Cash Flow Analysis in Summary

All amount in ' 000 SEK	Oct-Dec 2017	Oct-Dec 2016	Jan-Dec 2017	Jan-Dec 2016
Result before taxes	21,733	20,767	90,343	75,775
Adjustment for items not included in cash flow	1,662	2,483	9,122	7,322
Taxes	-2,943	-6,225	-14,176	-6,225
Cash flow from operations before changes in working capital	20,452	17,025	85,289	76,872

Changes in working capital	8,423	17,991	2,173	-305
Cash flow from operations	28,875	35,016	87,462	76,567

Capitalisation of development costs	-7,605	-6,066	-26,003	-12,276
Aquisitions in financial non-current assets	4,919	-188	-592	-830
Aquisitions in tangible non-current assets	-671	-1,357	-2,998	-1,925
Cash flow from investment activities	-3,357	-7,611	-29,593	-15,031
New loans and instalments of dept	0	0	0	0
Dividend	0	0	-35,777	-35,777
Cash flow from financing activities	0	0	-35,777	-35,777
Total cash flow	25,518	27,405	22,092	25,759
Liquid funds at beginning of period	129,028	105,049	132,454	106,695
Liquid funds at end of period	154,546	132,454	154,546	132,454

Income Statement - Parent Company

All amount in ' 000 SEK	Oct-Dec 2017	Oct-Dec 2016	Jan-Dec 2017	Jan-Dec 2016
Net sales	73,515	67,558	302,975	254,395
Cost of goods sold	-30,520	-30,398	-108,230	-96,348
Gross profit	42,995	37,160	194,745	158,047
Sales and marketing expenses	-12,071	-8,830	-41,729	-30,708
Administration expenses	-9,368	-8,292	-35,563	-28,668
R&D expenses	-13,619	-13,648	-52,789	-41,445
Operating profit	7,937	6,390	64,664	57,226
Interest income and financial exchange gains	448	354	1,784	3,594
Interest expense and financial exchange losses	-408	-1,118	-2,086	-1,871
Profit before income tax	7,977	5,626	64,362	58,949
Taxes	-1,841	-1,002	-14,245	-12,733
Net profit	6,136	4,624	50,117	46,216

Statement of Comprehensive Income

All amount in ' 000 SEK	Oct-Dec 2017	Oct-Dec 2016	Jan-Dec 2017	Jan-Dec 2016
Net profit for the period	6,136	4,624	50,117	46,216
Other comprehensive income:	0	0	0	0
Sum of other comprehensive income:	0	0	0	0
Comprehensive profit for the period	6,136	4,624	50,117	46,216

Balance Sheet - Parent Company

All amount in ' 000 SEK	12/31/2017	12/31/2016
Assets
Intangible assets	15,521	22,518
Tangible assets	4,006	2,047
Deferred tax assets	2,078	1,248
Financial assets	2,629	2,035
Inventory	23,862	32,167
Trade receivables	38,689	25,894
Receivables from group companies	6,918	5,693
Other receivables	12,152	12,914
Cash and bank	145,398	123,924
Total assets	251,253	228,440

Equity and liabilities

Total equity and liabilities	251,253	228,440
Warranty provisions	1,428	1,248
Liabilities to group companies	12,306	11,465
Trade payables	20,904	16,076
Short term debt	22,466	22,241
Provisions	2,401	0
Equity	191,748	177,410

Reconciliation tables KPIs, non-IFRS measures

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's 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.

Net earnings per share

KSEK	Oct-Dec 2017	Oct-Dec 2016	Jan-Dec 2017	Jan-Dec 2016
Profit/loss for the period	17,328	17,824	69,723	59,800
Number of shares	23,851,547	23,851,547	23,851,547	23,851,547
Net earnings per share	0.73	0.75	2.92	2.51

Equity per share

KSEK	Oct-Dec 2017	Oct-Dec 2016	Jan-Dec 2017	Jan-Dec 2016
Equity	240,851	206,175	240,851	206,175
Number of shares	23,851,547	23,851,547	23,851,547	23,851,547
Equity per share	10.10	8.64	10.10	8.64

Equity-asset ratio

KSEK	Oct-Dec 2017	Oct-Dec 2016	Jan-Dec 2017	Jan-Dec 2016
Equity	240,851	206,175	240,851	206,175
Balance sheet total	300,597	256,445	300,597	256,445
Equity ratio	80.1%	80.4%	80.1%	80.4%

Gross margin

KSEK	Oct-Dec 2017	Oct-Dec 2016	Jan-Dec 2017	Jan-Dec 2016
Net sales	76,130	72,761	309,312	265,038
Gross profit	55,404	52,773	223,220	188,936
Gross margin	72.8%	72.5%	72.2%	71.3%

Operating margin

KSEK	Oct-Dec 2017	Oct-Dec 2016	Jan-Dec 2017	Jan-Dec 2016
Net sales	76,130	72,761	309,312	265,038
Operating profit	21,676	21,648	90,892	74,168
Operating margin	28.5%	29.8%	29.4%	28.0%

EBITDA

KSEK	Oct-Dec 2017	Oct-Dec 2016	Jan-Dec 2017	Jan-Dec 2016
Operating profit	21,676	21,648	90,892	74,168
Depreciation	2,192	2,280	8,450	8,261
EBITDA	23,868	23,928	99,342	82,429

Net sales

KSEK	Oct-Dec 2017 (%)	Oct-Dec 2017 MSEK	Oct-Dec 2016 (%)	Oct-Dec 2016 MSEK
Last period		72,761		61,553
Organic growth	6%	4,002	14%	8,746
Currency effect	-1%	-633	4%	2,462
Current period	5%	76,130	18%	72,761

Key performance indicators not defined according to IFRS

Currency effect. Exchange rate effects on sales growth for the period. Equity/assets ratio. Shareholders' equity including non-controlling interests as a percentage of total assets.

Gross margin. Gross profit as a percentage of net sales. Gross profit. Net sales less cost of goods sold.

Shareholders' equity per share. Shareholders' equity attributable to Parent Company shareholders divided by the number of outstanding shares at the end of the period.

Operating margin (EBIT), %. Operating profit (EBIT) as a percentage of net sales for the period

Operating profit (EBIT). Earnings before interest and tax

This is CellaVision

Vision

Our vision is global digitization and automation of blood analyses for both the human and veterinary segments. Our method contributes to improved patient diagnostics, streamlining and reduced healthcare costs.

Business concept

CellaVision develops and sells digital solutions for medical microscopy. We replace manual microscopes with analyzers based on digital image analysis technology, artificial intelligence and IT. Our systems contribute to more effective workflows and higher quality in laboratory medicine.

CellaVision´s core activitiest

CellaVision's core activities are digital image analysis of blood and other body fluids. Innovation is an important part of CellaVision's mission and its employees are the company's main resource. The company's coordinated competence transforms customers' needs into effective solutions for healthcare services.

CellaVision's employees have a high level of education and sound experience of the biomedical sector. Our employees' broad competence in product development, quality assurance, market establishment and market support is crucial to the company's development. The company has core technological expertise in image analysis, artificial intelligence and automated microscopy.

Company culture

CellaVision's corporate culture is characterized by understanding of the customer, quality awareness and ability to take action with responsibility, which is reflected in CellaVision's value-creating core values: Customer in focus, Initiative and Responsibility and Simplicity and Quality. Along with objectives, vision and guidelines, the core values inform the daily work and form a profitable corporate culture.

Offer to end customers

CellaVision offers digital solutions for medical microscopy in hematology. The end customers are large hospital laboratories and commercial laboratories. CellaVision's unique concept replaces manual microscopes and improves the blood analysis process. In that way more patients can receive faster care of better quality while healthcare services can use their resources better.

Strategic partnerships

To achieve scalability in manufacture and sales CellaVision works with strategic partners.

Suppliers

CellaVision's analyzers are manufactured in Sweden on contract. The company has direct agreements with selected sub-contractors for key components.

Distribution via suppliers of cell counters

CellaVision's solution is the last step in a blood analysis process, in which the cell counter is central. Agreements with the foremost suppliers of cell counters are therefore strategically important so as to reach end customers cost effectively. CellaVision partners have a broad range of products and global salesforces with local knowledge. CellaVision's own organization supports its partners in the sales process.

Financial targets

Our objective is to create a global standard for digital microscopy in the sub-field hematology. The objective is broken down into important financial targets.

• Sales growth ≥15%

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

• Operating margin >20 %

The operating margin is to exceed 20 percent over an economic cycle.

With CellaVisions system, the result from the automated differential analysis is clearly presented on the computer screen, checked and signed off by the laboratory technician. All steps in the analysis chain are digitally documented, stored, easily shared and fully searchable. That's what we call work flow.

Questions concerning the report can be addressed to:

Zlatko Rihter, CEO Tel: +46 46 460 16 71 [email protected]

Publication

The information in this interim report is disclosed by CellaVision AB (publ) pursuant to the Securities Market Act and the Financial Instruments Trading Act. The information was released for public disclosure on February 9, 2018 at 08.20.

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

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

Financial calendar

Financial calendar	Datum
Interim report Jan-March	May 3
Annual general meeting	May 4
Interim report Jan-June	July 19
Interim report Jan-Sept	October 23
Year-end bulletin	February 7, 2019

CellaVision in the world

HEAD OFFICE IN SWEDEN

CellaVision AB (Publ) Mobilvägen 12 224 71 Lund Established 1998

Visiting address: Mobilvägen 12 Tel: +46 46 460 16 00 www.cellavision.com

USA

CellaVision Inc. 2530 Meridian Pkwy, Suite 300 Durham, NC 27713 Tel: +1 919 806 4420 E-post: [email protected] Established 2001

CANADA

CellaVision Canada Inc. 2 Bloor St West, Suite 2120 Toronto, ON M4W 3E2 Tel: +1 800 390 1374 E-post: [email protected] Established 2007

JAPAN

CellaVision Japan K.K. 9th Floor Sotestu KS Building 1-1-5 Kitasaiwai,Nishi-ku, Kanagawa 220-0004 Japan Tel: +81 45 670 7110 Email: [email protected] Established 2008

CHINA

Shanghai (Market Support office) Tel: +86 21 5308 5373 Email: [email protected] Established 2012

Beijing , Market Support office) Tel: +86 21 5308 5373 Email: [email protected] Established 2013

SOUTH KOREA

Seul (Market Support office) Tel: +86 21 5308 5373 Email: [email protected] Established 2016

DUBAI

(Market Support office) Tel: +97 1 52 9855098 Email: [email protected] Established 2016

AUSTRALIA

Sydney (Market Support office) Tel: +61 422 648 591 Email: [email protected] Established 2016

FRANCE

Paris (Market Support office) Email: [email protected] Established 2016

GERMANY

(Market Support office) Email: [email protected] Established 2017

BRAZIL