Intrasense — Earnings Release 2022

Oct 12, 2022

Montpellier, France, October 12, 2022 - 05:45 pm CEST

2022 half-year results: continued growth momentum

• Salesexcludingwar zone up 42%
• Overall Group growth of +5.3%
• Acceleration of commercialdiversification
• Continuation of the innovation strategy

Intrasense (FR0011179886 - ALINS), specialist in medical imaging software solutions and developer of Myrian® (the "Group"), today announces its 2022 IFRS Group consolidated half-year financial results.

Revenue growth and first benefits of commercial investments

"The growth in sales recorded in the first half of 2022 is particularly noteworthy in a geopolitical context impacted by the conflict in Ukraine, and confirms the development momentum initiated in 2021 following the capital increase," says Nicolas Reymond, CEO of Intrasense.

"We are strengthening our positioning in our historical regions, China and France, and diversifying our activities through new geographies such as Brazil. This strategy of market share growth and development of targeted markets will continue in the coming months.

Our innovation strategy, through the investments we are making in R&D on our radiology and oncology product lines, as well as the first results obtained, allow us to be confident about the continuation of our growth in the years to come," adds Nicolas Reymond.

In € thousand	H1 2022	H1 2021	Change	Change in % of total
Net sales	1,905	1,809	+96	+5.3%
Consolidated sales outside the war zone	1,839	1,295	+545	+42.1%
Adjusted gross profit2	1,714	1,450	+264	+18.2%
Earnings before interest, taxes, depreciation, and amortization3 (EBITDA4 )	-991	-470	-521	-110.9%
In € thousand	30/06/22	31/12/21	Change	Change in % of total
Net Cash	2,580	4,763	-2,183	-45.8%

Main aggregates of the IFRS consolidated accounts (1)

The Group continues to grow, recording revenues of €1,905k. Excluding the war zone, it is up by 42% compared to 2021. The Group's strategy of investing in its two key markets, Europe and China, in terms of sales force, continues to pay off.

France performed very well, with a +31% increase in activity, and the Group recorded +26% growth in China, thanks to a reorganization of its sales forces designed to better understand market expectations. The geopolitical situation explains the loss of activity in the zone including Russia, Belarus and Ukraine.

The signing of a major 8-year commercial contract in Brazil illustrates the first results of a proactive policy of diversifying commercial activities, targeted towards areas with strong development potential.

The compliance of Myrian® with the new European medical device regulation, which was submitted for regulatory approval in August 2022, will allow the company to obtain validation of the next version in 2023 and thus provide an opportunity to further accelerate sales.

Human resources: an investment for tomorrow's growth

Staff expenses amounted to €1,827k, with an increase of €443k, in line with the strategy announced by the Group at the time of its capital increase in June 2021.

The recruitment of new Marketing and R&D talents, dedicated to the development of the new oncology product line and to the integration of artificial intelligence within Myrian® - with new partnerships signed with Milvue and Nurea during the first half of the year - represent a sustainable driver of innovation and growth for the Group.

The strengthening of the sales team in China and France is bringing very encouraging initial results, in the context of a Chinese market tempted by protectionism and despite the geopolitical difficulties in Ukraine.

External expenses amounted to 843 K€ with an increase of 337 K€. This increase is due to the use of outsourced resources, in particular management and interim staff, in order to meet the challenges of skills requirements, pending internal recruitment. This increase is also the result of an increase in recruitment costs, always with the objective of sourcing the best talent in a very competitive job market. This increase is therefore neither recurrent nor structural and is linked to the Group's current growth period.

The restated operating result before depreciation and amortization (EBITDA) is thus -991 k€. The Group shows an operating loss at the end of the semester, resulting from the investment policy decided mid-2021 and managed in a monitored and controlled manner.

Cash and cash equivalents remain at a high level and amount to +2,580 k€ at June 30, 2022. They also reflect an investment in new talent, intended to support growth.

The interim consolidated financial statements were approved by the Board of Directors at its meeting of October 11, 2022. The financial data presented in this press release have been subject to a limited review. The reports of the Group's Statutory Auditors, KPMG, are included in the 2022 half-year financial report, which is being published online today.

Simplified consolidated half-year income statement

SIMPLIFIED HALF-YEAR INCOME STATEMENT (In k€)
	H1 2022	H1 2021	Change	Change in %
Net sales	1,905	1,809	96	+5.3%
Gross profit 2	1,714	1,450	264	+18.2%
Staff Expenses	1,827	1,384	443	+32.0%
External expenses	843	506	337	+66.6%
Other operational current expenses (excluding depreciation and other current expenses)	35	30	5	+16.8%
EBITDA4 - Earnings before interest, taxes, depreciation and amortization3	-991	-470	-521	-110.9%
Amorisation expenses	317	257	60	+23.3%
Depreciation expenses and provisions	614	-68	682	N/A
Current operating income	-1,923	-659	- 1,264	N/A
Non-current operating income and expenses	-	-	-	-
Operating income	- 1,923	-659	- 1,264	N/A
Financial income	-16	-5	-11	N/A
Tax	-	-	-	-
Net income	- 1,939	-664	- 1,275	N/A

A reinforced growth plan and innovation potential

2022 is a pivotal year following the capital increase completed in June 2021.

The prototype of the new oncology product line will be tested from the end of 2022 through several strong partnerships with major players in cancer treatment. This next step will prepare the product for commercialization in 2023.

With regard to Myrian® new clinical artificial intelligence functionalities will be added to its offering, with the integration of new algorithms. The Group will also progressively evolve the business model of its radiology platform over the coming years, in the context of major technological changes, thus enabling the development of stronger recurring revenues, subscription offers and services.

The Group's ambition is also to continue to diversify its marketing geographies, for example in Italy, and to assert its position as a leader in medical imaging software solutions, particularly in the areas of clinical trials and healthcare data.

New Group Chief Financial Officer

Intrasense also announces the appointment of Julien Coste as Group Chief Financial Officer, replacing Lionel Seltz. Julien took up his position in August 2022 and has extensive experience in the healthcare sector, notably with biotech companies such as Deinove (listed on Euronext Growth) and Neuro3d. He will work to continue implementing the Group's growth strategy with a view to industrialization and continuity. Julien Coste succeeds Lionel Seltz and has been able to benefit from a transfer of responsibility, achieved under the best possible conditions.

Following the publication of its half-year results, the company invites its shareholders to participate in a webinar on October 18 at 6:00 pm, during which Nicolas Reymond, CEO, will detail and analyze the financial results and answer questions. Please register by clicking on this link.

About Intrasense

Founded in 2004, Intrasense develops and markets a unique medical device named Myrian®, a software platform facilitating and ensuring diagnosis, decision-making and therapeutic follow-up. Thanks to Myrian®, more than 1000 hospitals and clinics spread over 40 countries use a unique and integrated platform supporting all types of imaging modalities (MRI, scanner…). Enriched with expert clinical modules dedicated to specific pathologies and organs, Myrian® provides a universal medical image processing solution which can be fully integrated into any healthcare information system. Intrasense has 56 employees among which 16 are dedicated to Research & Development. Intrasense has been labelled 'innovative company' by the BPI and has invested more than 10 million euros in Research & Development since its creation. More information on: https://www.intrasense.fr/

• (1) Annual IFRS consolidated accounts of the Intrasense Group, audited by the auditor.
• (2) Gross margin Sales less purchases.
• (3) Operating income before depreciation and amortization Operating income based on the margin calculation and excluding exceptional costs related to the Group's strategic development.
• (4) EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization is an indicator used by management to measure operating and financial performance and to make investment and resource allocation decisions. It is not a substitute for operating income before non-recurring items, as the effects of depreciation, amortization and impairment, which are excluded, can have a significant impact on it.

Contacts

Intrasense

Anne-Elisabeth Achiri Communications Officer Phone: +334 67 13 01 30 investisseurs@intrasense.fr

NewCap

Hugo Willefert Financial communication and investor relations Phone: +331 44 71 20 40 intrasense@newcap.eu