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Strong revenue growth and improved profitability

Second quarter April – June 2023

·  Order intake increased 12 percent to 117.8 (105.6) MSEK (2 percent in constant currencies).
·  Order backlog amounted to 679.1 (498.6) MSEK.
·  Revenue increased 44 percent to 90.6 (62.7) MSEK (29 percent in constant currencies).
·  EBIT amounted to 7.4 (0.8) MSEK, corresponding to a margin of 8.2 (1.2) percent.
·  Cash flow from operating activities amounted to -22.0 MSEK (-6.4 MSEK).
·  Net earnings amounted to 5.4 (-2.9) MSEK.
·  Earnings per share amounted to 0.16 (-0,09) SEK.
 
Interim Period Jan – June 2023

·  Order intake increased 12 percent to 209.2 (187.1) MSEK (4 percent in constant currencies).
·  Revenue increased 47 percent to 175.0 (119.0) MSEK (33 percent in constant currencies).
·  EBIT amounted to 13.8 (0.9) MSEK, corresponding to a margin of 7.9 (0.8) percent.
·  Cash flow from operating activities amounted to -33.9 MSEK (-11,3 MSEK).
·  Net earnings amounted to 8.7 (-4.1) MSEK.
·  Earnings per share amounted to 0.26 (-0,12) SEK.
 
Significant events during the second quarter
 
·  C-RAD won an order to Cancer Care Associates in April, with an order value of 23 MSEK.
·  Towards the end of the quarter, German customer MVZ Prof Dr Uhlenbrock und Partner chose to further expand their partnership with C-RAD when they placed an order of 8.9 MSEK.
·  On the 30th of June, the Patent and Market appeal court partly changed the lower court’s ruling in a dispute between C-RAD and a former employee.
·  On the 5th of May, C-RAD held its AGM, where three new board members were elected.
 
Significant events after the quarter
 
·  The C-RAD board of directors decided to appeal to the Supreme Court in relation to the dispute between C-RAD and a former employee.
·  The C-RAD board of directors has decided to repurchase own shares in connection to C-RAD’s long term performance plan. The decision is limited to a maximum of 88 500 class B shares.
 

CEO Cecilia de Leeuw comments on the interim report:
We are seeing an impressive revenue growth of 44 percent to 91 (63) MSEK compared to same quarter last year. An improved EBIT of 7.4 (0.8) MSEK is a result of active work driving profitable growth. I am pleased to see that we have a solid global resilience, despite a challenging quarter in the Americas. Order intake continues to show healthy growth of 12 percent compared with same quarter last year. Our order backlog is now at an all time high of 679 (499) MSEK. Services relative to revenue has increased to 20 (18) percent in the quarter. The cash flow was negative, impacted by an increase in accounts receivables, which is partly due to our strong revenue growth.

APAC overall had an exceptionally strong quarter, with the highlights being the large order to Australian Cancer Care Associates (CCA) as well as China almost being back to pre-covid levels. In Australia, where we are market leaders, the first site is up and running with CCA. The government of China has announced a new 5-year investment plan for Medical Devices including conventional linear accelerators and Protons. We expect that to have a positive impact on the surface tracking demand in China, another region where we are market leaders.

The activity level in EMEA is high. Our UK sales investment last year is starting to pay off. After extensive research and evaluation, a UK University hospital selected C-RAD as supplier of SGRT. We continue to gain confidence and penetration in the market.

The slowdown in decisions by our customers in the US, became apparent this quarter. General uncertainty and rising costs due to inflation, is indirectly impacting the construction of new treatment facilities. A way to counter this slowdown is to increase our effort by retrofitting SGRT to existing linear accelerators and thereby helping the clinic to increase the value of their investment. Our increased marketing has generated a healthy pipeline. On a broader Americas perspective, increased activity levels in Latin America is promising for the future.

My first six months as CEO has been both intense and rewarding. Spending time with our customers and learning how they use our products in their clinics is very important to me and to C-RAD. Not only does it provide unique insight into the daily life and needs of the staff in the clinic, but it also helps to evolve our roadmap and priorities. We as C-RAD have an important role to play in making SGRT becoming standard of care. I look forward to our continued strive to bring SGRT to more patients around the world.
 
Presentation of the Interim Report

CEO Cecilia de Leeuw and CFO Christoffer Herou will present the interim report for the second quarter by webcast on Thursday, July 20 at 11:00 CET. After the presentation, there will be time for questions. The presentation will be held in English. To participate in the presentation, please register using the link below:
https://us06web.zoom.us/webinar/register/WN_WTN26lkNSuuYDEgXSBuiAQ

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