Financial information October – December 2022

• Net sales amounted to TSEK 4,550 (3,717), a 22 percent increase. Sales of instruments were TSEK 1,603 (1,358), an 18 percent increase. Sales of disposables were TSEK 2,947 (2,358), a 25 percent increase.
• Adjusted sales* increased by 59 percent.
• Adjusted for the acquisition of RMI and currency fluctuations, net sales decreased by -21 percent.
• The gross margin excluding amortization was 65.3 percent (45.4).
• EBITDA was TSEK -37,458 (-21,561).
• Profit (loss) after financial items was TSEK -42,692 (-24,366).
• Earnings per-share were SEK -0,61 (-0.38).
• Cash and cash equivalents as of December 31, 2022, were TSEK 26,035 (74,872).

Financial information January – December 2022

• Net sales amounted to TSEK 14,034 (10,980), a 28 percent increase. Sales of instruments were TSEK 6,686 (5,570), a 20 percent increase. Sales of disposables were TSEK 7,348 (5,410), a 36 percent increase.
• Adjusted sales* increased by 80 percent.
• Adjusted for the acquisition of RMI and currency fluctuations, net sales decreased by -1 percent.
• The gross margin excluding amortization was 62.0 percent (54.3).
• EBITDA was TSEK -118,353 (-73,300). Adjusted for RMI related acquisition costs, EBITDA was TSEK -101,587 (-73,300).
• Profit (loss) after financial items was TSEK -134,358 (-84,289).
• Earnings per-share were SEK -1.99 (-1.31).
• The acquisition of RMI was completed on July 1, 2022 (see page 17).

* Adjusted for currency, non-recurring items, and RMI, which was acquired in the third quarter. Non-recurring items refer to estimated inventory build-up by distributors in South Korea and the US

Highlights fourth quarter

• Clinical guidelines in the US and Europe support Senzime’s patient monitoring technology, laying the foundation for long-term growth
• Increased sales of TetraSens and customer mix strengthen gross margin to 65 percent

CEO COMMENTS

Many key pieces fall into place in 2022: our strategic acquisition of RMI of the US, a license and collaborative agreement with Masimo, a new commercial strategy in the US, major new customers in Europe and the US, plus clinical guidelines published supporting our technology. We’ve worked strategically to create a commercial platform, and our investments in direct sales on our core markets, combined with distributors on other key markets, are starting to pay off.

In the fourth quarter we reported strong underlying direct sales growth, above all for sensor sales. Net sales grew by 59 percent to SEK 4.6 m, adjusted for the acquisition of Respiratory Motion Inc. (RMI), currency effects and non-recurring items. In Europe, underlying sales increased by 46 percent, and in the US by 126 percent. Our gross margin expanded from around 45 percent to 65 percent, reflecting sensors accounting for a higher sales share.

The installed base of TetraGraph® systems generated disposable sensor sales of SEK 2.9 m, an increase of 111 percent adjusted for the acquisition of RMI, currency fluctuations and non-recurring items. We also secured our first order of TetraSens® Pediatric, for monitoring children, from a leading US university hospital in the period.

In the fourth quarter, clinical guidelines were adopted by the American Society of Anesthesiologists (ASA) in the USA and the European Society of Anaesthesiology and Intensive Care (ESAIC) in Europe. Both these guidelines, now published in leading scientific journals, recommend the type of technology that Senzime's TetraGraph system is based on for monitoring patients receiving muscle relaxant drugs as part of general anesthesia. We’re already seeing how these guidelines have increased market interest, and we expect demand will continue to grow in 2023, helping our continued positive sales performance.

The ExSpiron® monitoring system, included in the acquisition of RMI, is now integrated into our product portfolio, and our sales force and distributors are starting to position it commercially. ExSpiron fits our business well, offering the potential to help improve care end to end in the value chain. However, our current focus is on commercialization in those segments adjacent to the TetraGraph system, to optimize synergies.

Healthcare decision-making and budget processes in different countries can affect performance between quarters, as can large single orders. However, we’re seeing a really positive underlying market trend, with interest in, and demand for, our solutions increasing. In 2023, I expect robust and accelerated sales performance demonstrating that our mid to long-term goals are within reach.

The rights issue we’ve announced, with commitments from our main shareholders, gives every shareholder the opportunity to remain part of our journey. I’m really grateful that shareholders representing close to 50 percent have announced their intention to subscribe for their pro rata holdings. This issue empowers us to keep scaling up our sales channels in the US and accelerate our collaborative projects with Masimo of the US.

I’m so proud of where we are today, and the work done by all our professionals at Senzime. I’m looking forward to us continuing to work together to reduce complications and patient suffering, while contributing to improved quality of care.

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Uppsala, februari 2023
Pia Renaudin, VD