XVIVO Perfusion Interim report January – June 2016

SECOND QUARTER 2016 (APR – JUN)

• Net sales in the quarter amounted to SEK 34.5 (29.1) million, corresponding to an increase of 18 percent. Net sales of non-Durable goods* in the quarter amounted to SEK 29.8 (27.4) million, corresponding to an increase of 9 percent in SEK and 11 percent in local currency.
• Operating income before depreciation and amortization (EBITDA) excluding one-time expenses increased by 51 percent and amounted to SEK 6.9 (4.6) million, corresponding to an EBITDA margin of 20 percent. One-time expenses of SEK 2.2 million related to the Nasdaq Stockholm main market listing and the public offer for Vivoline have been charged against the quarter. EBITDA amounted to SEK 4.8 (4.6) million, corresponding to an EBITDA margin of 14 percent.
• Net income amounted to SEK 1.5 (1.0) million, resulting in earnings per share of SEK 0.07 (0.05), affected by amortization and depreciation of SEK 3.1 (2.9) million.
• Cash flow from operating activities was SEK 8.1 (8.8) million.
• Total sales from warm perfusion (STEEN Solution™, products and services related to the use of the XPS™ and XPS™) accounted for 42 (39) percent of the total sales.
• 3 XPS™ contracts were signed in the USA during the quarter, whereof 2 were shipped.
• During the quarter XVIVO Perfusion acquired 97 percent of the shares and 99 percent of the 2015/2016 warrants in the listed company Vivoline Medical AB. The combined company creates more resources and competence to take Professor Stig Steen’s world-leading research in the field of heart transplantation to a commercial phase. The acquisition also strengthens XVIVO Perfusion’s market position in the field of lung transplantation.
• The first patient in the clinical study with PrimECC® was included. PrimECC® is a CE marked and patent-protected product, developed to prime the heart-lung machine before open heart surgery.
• STEEN Solution™ was used for the first time to give localized delivery of a chemotherapy agent to a patient suffering from metastatic lung sarcoma through In-Vivo Lung Perfusion (IVLP).
• XVIVO Perfusion’s share warrant program 2016/2018, which was offered to employees, was fully subscribed.

THE PERIOD 2016 (JAN – JUN)

• Net sales in the period amounted to SEK 68.0 (60.9) million, corresponding to an increase of 12 percent. Net sales of non-Durable goods* in the period amounted to SEK 58.8 (52.5) million, corresponding to an increase of 12 percent in SEK and 13 percent in local currency.
• Operating income before depreciation and amortization (EBITDA) excluding one-time expenses increased by 56 percent and amounted to SEK 14.2 (9.1) million, corresponding to an EBITDA margin of 21 percent. One-time expenses of SEK 4.6 million related to the Nasdaq Stockholm main market listing and the public offer for Vivoline have been charged against the period. EBITDA amounted to SEK 9.6 (7.5) million, corresponding to an EBITDA margin of 14 percent.
• Net income amounted to SEK 2.6 (1.0) million, resulting in earnings per share of SEK 0.12 (0.05), affected by amortization and depreciation of SEK 6.2 (5.6) million.
• Cash flow from operating activities was SEK 13.3 (2.9) million. Cash at bank increased by SEK 0.6 million to SEK 41.8 million during the period, even though the Vivoline acquisition affected cash with SEK -7.6 million.
• Total sales from warm perfusion (STEEN Solution™, products and services related to the use of the XPS™ and XPS™) accounted for 41 (42) percent of the total sales.
• During the period 5 XPS™ were sold, of which 2 to Europe and 3 to the US. France and Switzerland were new countries that got access to the XPS™ during the period.
• XVIVO Perfusion AB’s shares were admitted for trading on Nasdaq First North Premier 8 February 2016. The company's shares will continue trading with the same short name and ISIN code.

SIGNIFICANT EVENTS AFTER THE END OF THE QUARTER

• On July 14 the extended acceptance period for the offer for the shares and warrants of series 2015/2016 in Vivoline Medical AB was closed. During the extended acceptance period further 179,097 shares and 28,155 warrants were accepted, whereby XVIVO Perfusion became the owner of 98.6 percent of the shares and 99.6 percent of the warrants. Therefore, the Board decided to issue 30,065 new shares in XVIVO Perfusion as payment for the acquired shares and warrants.
• At the time of publication of this report, 39 clinics have access to the XPS™ and LS-1**, including 20 clinics in the US and 19 clinics in Europe and the rest of the world.

CONFERENCE CALL

CEO Magnus Nilsson will present the report in a conference call at 2 p.m. CET on Friday, July 15, 2016. Telephone: +44 (0) 1452 555566, enter code 41101325.

July 15, 2016
Gothenburg
XVIVO Perfusion AB (publ)
Magnus Nilsson, CEO 

* Durable goods are sales revenues from the XPS™.
** LS-1 is the Vivoline EVLP machine.