Substantially increased sales, improved earnings and partnership commenced with Panasonic.

Transcription

1 Substantially increased sales, improved earnings and partnership commenced with Panasonic. January December 2009 Net sales rose by 20% to SEK 98.8m (82.4) The number of NIOX MINO refill tests sold rose by 33% and amounted to 767,650 (578,000) The gross margin was 70% (64) The cash flow from current operations was negative in the amount of SEK 65.7m (102.6) The loss after tax amounted to SEK 85.1m (128.8) The loss per share before dilution amounted to SEK 1.3 (2.8) October December 2009 Net sales rose by 23% to SEK 25.9m (21.1) The number of NIOX MINO refill tests sold rose by 36% and amounted to 220,200 (161,600) The gross margin was 66% (67) The loss after tax amounted to SEK 17.0m (33.9) The cash flow from current operations remained negative at SEK 10.1m (18.3) The loss per share before dilution amounted to SEK 0.3 (0.7) Aerocrine and Panasonic Shikoku Electronics enter long-term cooperation on asthma, where Panasonic will be conducting and financing the technical development of the Company's future products, both for clinical and home use. Significant events after the end of the period A US panel of experts issues recommendations regarding the use of exhaled NO in the diagnosis and treatment of asthma. AEROCRINE IN BRIEF 1 October 31 December 1 January 31 December SEK million Net sales Gross profit/loss Operating profit/loss Profit/loss before tax Cash flow Comment by the CEO "The Company's focus on its principal products NIOX MINO and their associated tests continues to be successful. Sales rose by 53% in the fourth quarter and by 47% over the full year. The Company has achieved total annual sales of more than a million patient tests and annual revenues of nearly SEK 100m. The favourable growth in sales of NIOX MINO has also further improved the Company's gross margin. The Company's ongoing operating costs were reduced by about SEK 50m over the year. However, earnings were burdened by high costs for patent disputes and reassessments of assets and liabilities. Sales of NIOX MINO in the US grew by 77% in the fourth quarter. In January 2010, strong recommendations were issued by a US panel of experts for the use of the Company's method, and order bookings for NIOX MINO for the pharmaceutical companies' clinical trials in the US remain favourable," says Aerocrine's CEO, Paul de Potocki. For further information, please contact: Paul de Potocki, CEO Michael Colérus, CFO Tel: +46 (0) (0) This is information that Aerocrine AB (publ) is required to publish in accordance with the Swedish Securities Markets Act and/or the Swedish Financial Trading Act. This information was submitted for publication on 25 February 2010, at 8:00 a.m. Disclaimer : This is an in-house translation 1(13)

2 Aerocrine s operations in brief Aerocrine is an international medical technology corporation dedicated to improved treatment and care for patients with inflammatory respiratory diseases, such as asthma. The company s operations and products have been developed on the basis of scientific discoveries made by its founders at the Karolinska Institute in Sweden. They demonstrated that while air normally exhaled by humans contains low but relatively constant levels of nitric oxide (NO), air exhaled by individuals suffering from respiratory inflammation contains increased levels of NO. These discoveries have facilitated the rapid and reliable testing of the inflammatory condition of patients airways and can therefore play a critical role in enhancing the efficiency of diagnosis, treatment and assessment of asthma patients. Asthma is one of the world s most prevalent diseases and there are currently no alternative methods for the routine measurement and assessment of the underlying cause of the disease respiratory inflammation. Aerocrine leads the development of instruments and clinical applications for the measurement of NO levels in exhaled air. The company holds a sizeable portfolio of patents, including 14 approved patents in the US and additional patents pending. Aerocrine currently markets one product actively, NIOX MINO and supplies NIOX Flex, primarily to the research market. NIOX MINO is the world s first hand-held NO metre and has gradually been launched in Europe, the US and other parts of the world since 2005 for broader-scale clinical use and for use by patients outside healthcare institutions. The Aerocrine Group s operational units comprise the Parent Company, Aerocrine AB, and its subsidiaries, Aerocrine Inc. in the US, Aerocrine AG in Germany, Aerocrine Ltd in the UK and Aerocrine ESOP AB. All of these subsidiaries are fully owned by Aerocrine AB, with operations commencing during the first quarter of 2002 in the US, during the third quarter of 2003 in the UK and during the fourth quarter of 2005 in Germany. The company s products are also marketed through distributors in a number of countries. Since 15 June 2007, Aerocrine has been listed on the Nasdaq OMX Nordic list for small cap companies he ticker AERO. NIOX MINO and NO help doctors determine the correct diagnosis, thereby saving money for society. Dr Jacqueline Eghari-Sabet is an asthma and allergy specialist at the Family Allergy & Asthma Care in Gaithersburg, Maryland, in the US. At her surgery, she met a sportswoman who had suffered shortness of breath for some time and who had experienced problems with breathing normally on a daily basis. Earlier treatment had included an inhaled steroid for exercise-related shortness of breath. During the week prior to her visit to Dr Eghari-Sabet, the woman had fainted due to acute shortness of breath while running on a treadmill and was taken to hospital by ambulance. Once admitted, several tests were conducted, including an X-ray of her lungs, which revealed nothing. At the time of her visit, she was still being treated with inhaled steroids and drugs to dilate her airways. Pulmonary function tests showed normal values. Dr Eghari-Sabet decided to measure the patient's NO (nitrogen monoxide) levels to determine the degree of inflammation in her airways. The result was an NO value of less than 20 ppb entirely normal for a healthy individual. This suggested that the woman did not have a respiratory inflammation that would respond to inhaled steroids despite displaying asthma-like symptoms. There are a number of diseases and syndromes that produce typical asthma symptoms but that cannot be treated effectively with the same drugs routinely prescribed for asthma. Subsequent discussions with the patient led to all asthma medication being discontinued, with follow-up visits being booked two weeks, six weeks and three months later. The woman received help in managing and eliminating her shortness of breath through training. At each follow-up visit, her NO levels remained below 20 ppb despite the discontinuation of anti-inflammatory drugs and the woman remained free of symptoms. Dr Eghari-Sabet concluded that measuring NO helped her determine the real cause of the woman's problems and that traditional asthma drugs were completely ineffective for her. If NO levels had been tested at the outset, unnecessary medication, asthma tests and lung X-rays could have been avoided, thereby avoiding unnecessary healthcare costs. NO testing is a useful tool in determining the correct diagnosis and avoiding unnecessary suffering. Patient case, Dr Jacqueline Eghari-Sabet, allergist, excerpt from an article published in ADVANCE for Disclaimer : This is an in-house translation 2(13)

3 Overview full-year 2009 Net sales for 2009 amounted to SEK 98.8m (82.4), an increase of 20%. The majority of net sales, 85% (67), are attributable to NIOX MINO and associated sales of tests. Sales of NIOX MINO have risen by 47% in value for the full-year, while sales of NIOX Flex and associated products declined by 35%. This is in line with the strategic priorities set by the Company. The gross margin for the 2009 full-year amounted to 70% (64). The change in the Company's product mix and positive currency effects on net sales contributed to the improvement in the gross margin. During 2009, a total of approximately 1,072,250 tests were sold (NIOX MINO refill tests, new sales and sales of filters for NIOX Flex), an increase of 28% compared with Sales of refill tests comprised 767,650 of the total number of tests (up 33%). The net currency effect on consolidated earnings was 3% compared with the preceding year. The loss after tax for the 2009 full-year amounted to SEK 85.1m (128.8), an improvement of 34%. The loss per share before dilution amounted to SEK 1.3 (2.8). The improvement in earnings for the year was primarily attributable to the restructuring implemented by the Group in the fourth quarter of 2008, a favourable change in the product mix and an associated improvement in margin, as well as increased sales. The Group's earnings have been impacted negatively by rising costs for patent issues and disputes, totalling SEK 22.3m (5.7). Adjusted for patent disputes, the Group's operating costs declined by 29% compared with the preceding year. Costs of SEK 13.9m (16.7) for the Group's personnel stock options programme were charged against earnings for the period. However, these costs have not affected consolidated cash flow for the period. For a complete description of the personnel stock options programme, please see Earnings for the year were also affected negatively in the amount of SEK 2.1m (pos.: 5.6) by the recalculation of accounts receivable (including receivables from subsidiaries), accounts payable and cash and equivalents due to currency fluctuations. The objective of the restructuring and savings programmes carried out in 2008 was to cut operating costs for 2009 by SEK 50m. Adjusted for consolidated costs for the personnel stock options programme and for patent disputes, operating costs amounted to SEK 116.8m (166.3), a decrease of SEK 49.5m. At 31 December 2009, the Group s consolidated tax loss was calculated at SEK 873.0m (796.2), of which SEK 807.3m (722.6) was attributable to the Parent Company. Of the total tax loss, SEK 819.7m (736.0) was not limited in terms of the period in which it can be offset against future taxable profits. The tax value of the taxloss carryforwards has not been capitalised. North America/US In 2009, sales for the North America segment amounted to SEK 22.7m (24.3), down 7%. The decrease is solely attributable to NIOX Flex, for which sales were down by 48% or SEK 6.8m, while sales of NIOX MINO rose by 53% or SEK 5.3m. Until a reimbursement system is established, sales in the segment are primarily driven by sales to pharmaceutical companies and companies that carry out clinical studies. Some of the sales generated in the US have been invoiced to pharmaceutical companies in Europe and are therefore not included in the segment's sales. This means that sales can vary relatively strongly from quarter to quarter. In August, the largest insurance company in the Mid-Atlantic region of the US announced that it had introduced a new policy making testing of exhaled NO a medical requirement in the treatment of patients with asthma. This is a very important step forward towards being able to reach a larger customer segment in clinical use and a breakthrough for the Group's method in the US market. However, a policy change of this kind does not have an immediate effect on sales. The decision to focus solely on sales of NIOX MINO has had a greater negative effect on sales for this segment than those in the rest of the world, since sales of NIOX Flex have represented a larger share of sales in the North American market. The improved product mix has led to an improvement in the gross margin. Compared with the preceding year, earnings for this segment were impacted negatively by currency exchange fluctuations, since the segment's costs exceed its sales. Sales of NIOX MINO show a very good rate of growth in the North American market. The market impediments Disclaimer : This is an in-house translation 3(13)

4 to faster and broader sales growth are the lack of a broad-based system for reimbursement from the major private insurance companies and the fact that inflammation testing is not currently recommended in the national guidelines for asthma treatment. In 2009, the US organisation focused its market and sales efforts on the regions with a functional reimbursement system. EU/Rest of the World (RoW) Sales in the EU/RoW segment show strong growth, reaching SEK 76.2m (58.1) for the period, an increase of 31%. It is primarily NIOX MINO that continues to show strong growth in the Group's established European markets, rising 43% compared with The rest of the world, led by China and Japan, is beginning to contribute a certain amount of sales. In Japan, efforts are underway to have NIOX MINO approved by the regulators for marketing. In China, the Company's product has been approved by the SFDA and is also included in the national guidelines. Decisions on reimbursement are expected from the 14 Chinese regions over the coming year. Overview October December 2009 Net sales for the period October December 2009 amounted to SEK 25.9m (21.1), an increase of 23%. The majority of sales, 86% (71), are attributable to NIOX MINO and associated sales of tests. Sales of NIOX MINO rose by 53% in value for the fourth quarter of 2009 compared with the year-earlier period, while sales of NIOX Flex and associated products declined by 46%. The decline is entirely in line with the decision made to gradually phase out these products and transfer to sales of NIOX MINO. The gross margin for the period amounted to 66% (67). During the period October December 2009, a total of approximately 304,150 tests were sold (refill tests, new sales and sales of filters for NIOX Flex), an increase of 34% compared with the corresponding period in Sales of refill tests comprised 220,200 of the total number of tests (up 38%). The loss after tax for the period amounted to SEK 17.0m (33.9). The loss per share before dilution amounted to SEK 0.3 (0.7). Adjusted for the items detailed below, underlying ongoing operations showed improved earnings amounting to a loss of SEK 9.4m (32.1). Earnings for the period were affected by costs of SEK 7.9m (2.2) for patent disputes, costs of SEK 0.7m (2.9) for the Group's personnel stock options programme and the recalculation of accounts receivable and cash and equivalents, which increased earnings by SEK 1.0m (3.4). North America/US Sales for the North America segment in the fourth quarter amounted to SEK 5.5m (5.4), an increase of 2%. Sales for the period were affected negatively by the strategic decision to cease active sales of NIOX Flex, which accordingly fell by 53%. The product on which the Company is focusing, NIOX MINO, showed very strong growth in the quarter, with sales up 77%. During the quarter, the savings measures involving the reduction of the internal organisation in the US subsidiary began to have an effect. Adjusted for currency effects, costs declined by 27% compared with the year-earlier period. EU/Rest of the World (RoW) In the fourth quarter too, sales in the EU/RoW segment showed continued strong growth, reaching SEK 20.4m (15.7) for the period, an increase of 30%. It is primarily NIOX MINO that continues to show strong growth in the Group's established European markets, being further strengthened by positive currency effects. Investments and cash flow Consolidated cash and equivalents amounted to SEK 24.3m (93.1) at the end of the period. The Group's investments for the full-year amounted to SEK 1.8m (6.2) and mainly involved investments in production tooling. Cash flow for the report period was negative in the amount of SEK 68.5 (25.8) and for the fourth quarter negative in the amount of SEK 11.7m (64.2). Cash flow for the preceding year was affected positively by the Disclaimer : This is an in-house translation 4(13)

5 new share issue carried out in December 2008, which, after deductions for issue fees, generated a cash injection of SEK 83.0m for the Company. Parent Company The Group s principal operations, including development, marketing and sales, are conducted by the Parent Company, Aerocrine AB. The Parent Company assumes the Group s market risk while the subsidiaries, Aerocrine INC., Aerocrine AG and Aerocrine Ltd, are sales companies with the objective of conducting marketing and sales activities in the North American, German and UK markets respectively. In addition to its sales activities, Aerocrine Inc. also conducts service operations. In connection with the introduction of the Group s personnel stock options programme, Aerocrine ESOP AB was founded. The Parent Company s net sales for the 2009 full-year amounted to SEK 93.1m (76.8), of which sales to Group companies amounted to SEK 39.4m (38.2). The loss after financial items for the 2009 full-year amounted to SEK 88.6m (128.4). The Parent Company s cash and equivalents amounted to SEK 21.1m (89.2) at year-end. Investments in machinery and equipment for the full-year amounted to SEK 1.2m (2.1) and investments in intangible assets to SEK 0.1m (1.1). The earnings of the Parent Company were affected negatively by changes in the Group's internal pricing model, whereby the Parent Company assumes all market risk and consequently makes marketing contributions to the subsidiaries to establish and develop their respective markets. Ownership status At 31 December 2009, Aerocrine AB had approximately 1,800 shareholders, of whom the seven largest represented approximately 82.4% of the votes and capital. At 31 December 2009, the total number of registered shares in the Group was 66,502,911. The largest owners in the Group on 31 December 2009 were Investor Investments Europe Ltd (26%), HealthCap Holding KB (23%), H & B Holding Ltd (11%), Life Equity Sweden KB (10%), the Third AP Fund (5%), Swedestart Life Science KB (4%), Phadia Holding AB (4%) and the Group s founders (approximately 1%). As per 31 December 2009, the total number of warrants issued and valid was 548,824. The adopted personnel stock options programmes (2007 and 2009) can entail a maximum of 4,250,931 shares being issued in the period , of which 11,006 shares were subscribed during the year. For a complete description of these programmes, please see On full conversion of all outstanding personnel stock option programmes, the number of shares would amount to 71,291,660. Personnel and organisation At the end of the period, the total number of employees in the Group amounted to 51 (69), of whom 26 (38) were employed in Sweden. Nominating Committee The Annual General Meeting of 28 April 2009 resolved that, until the composition of the subsequent Nominating Committee is announced, the new Nominating Committee would consist of representatives for the four largest shareholders in terms of voting rights (grouped by owner) and the Chairman of the Board, who is to convene the first meeting of the Nominating Committee. A Nominating Committee has been appointed consisting of representatives of the four largest shareholders and the Chairman of the Board. The shareholder representatives appointed as members are Thomas Eklund (Investor) Chairman, Björn Odlander (replacing Magnus Persson) (HealthCap), Anita Wilén-Koort (H&B Capital and Life Equity Sweden) and Anders Williamsson. Financing With the purpose of preparing the market launch of future products for care in the home, capitalising expected improvements in conditions in the US market and to rigorously defend the Company's patents, and thus shareholder value, the Board has determined that the Company's financial position should be strengthened. The Company has therefore retained the services of a financial advisor and initiated a process to secure longterm capital needs. It is the view of the Board that these measures will provide the Company with sufficient capital for the next 12 months given current strategic priorities, sales trends and levels of activity. Update on patent disputes Disclaimer : This is an in-house translation 5(13)

6 Aerocrine is involved in a number of legal processes considered typical for its area of operations. These involve disputes regarding encroachments on intangible rights, the validity of certain patents and commercial disputes. Described below are those matters where material changes have occurred since they were last commented on. In most cases where Aerocrine is a claimant, it is not possible to reasonably estimate the possible financial effect of the conclusion of the legal processes. In these cases, Aerocrine only provides information on the nature and facts of the case without implementing any provisions. In cases where settlement has been reached or a ruling has been announced, or where fines or damages have been imposed and are not subject to appeal, or where a loss is likely for which the Company has been able to make a reasonable assessment, the Company recognises that loss or implements an equivalent provision corresponding to the best possible estimate of the expected loss. It is possible for such positions to change with time and it is therefore not possible to guarantee that losses incurred in a legal process or investigation will not exceed the provisions that have been implemented. Aerocrine is currently involved in patent disputes with two companies: Medisoft P.A.E. in Germany and Apieron Inc. in the US and Germany. It is expected that both process will be concluded in the first half of In March 2008, Aerocrine brought suit against the Belgian company Medisoft for patent infringement in the German market. In September 2009, the court ruled that Medisoft has infringed upon three of Aerocrine's patents. Medisoft has appealed the ruling and initiated a process aimed at having Aerocrine's patent declared invalid in Germany. Aerocrine has submitted lawsuit applications to a court in the US against US company Apieron for infringement of three of Aerocrine's patents. Apieron has subsequently submitted lawsuit applications against Aerocrine for infringement of two patents to which Apieron acquired certain rights in Apieron has also submitted a lawsuit application against Aerocrine in Germany for infringement of the European equivalents of the above patents. Verbal court proceedings commenced on 12 February 2010 and will be resumed on 23 April 2010 when a ruling is expected regarding Aerocrine's alleged infringement of Apieron's patents in Germany. Aerocrine has previously initiated legal procedures in the US and Germany to have Apieron's patents declared invalid. Aerocrine intends to pursue these cases based on the facts relevant to each case. Aerocrine is strongly confident in, and will vigorously defend, its intangible rights related to its products and method for measuring exhaled nitric oxide. New share issue/conversion of options During the interim period, warrants were exercised to subscribe for 817 shares. Accounting principles This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, which agrees with Swedish law through the application of the Swedish Financial Accounting Standards Council s guideline RFR 1.2 Supplementary Accounting Rules for Groups and, regarding the Parent Company, RFR 2.2 Accounting for Legal Entities. New accounting principles for 2009 Revised IAS 1 Presentation of Financial Statements is applied from January 1, Among other things, the change entails that revenues and expenses previously reported directly against shareholders' equity are now detailed in consolidated statement of comprehensive income. Aerocrine has elected to report these in a separate statement. This change affects the Group's accounts retroactively from 1 January IFRS 8 "Operating segments", which replaces IAS 14 "Segment reporting", adjusts segment reporting to comply with US standards. The new standard requires that segment information be presented on the basis of a management perspective, entailing that it be presented in the same way as in internal accounting. The Group applies IFRS 8 effective from 1 January The change entails the Group changing its segments from the Airways Business Area to a geographical division, reflecting the way in which operations are followed-up internally. The Group has two geographical segments: North America/US and EU/Rest of the World. In other respects, the same accounting principles, definitions of key figures and calculation methods are Disclaimer : This is an in-house translation 6(13)

7 applied as in the most recent annual report. No new standards have come into force affecting Aerocrine's position or earnings. Risks The principal risks and sources of uncertainty for Aerocrine include, albeit not exclusively, financial risks, such as the future earnings trend, financing, and currency and credit risks. In addition to market risks, there are also risks associated with Aerocrine s operations, such as obtaining necessary approval from authorities, product development, patents and intellectual property rights, product responsibility and forward looking information, which can affect the Company. Further information on the Company s risk exposure can be found on pages 16 and 17 of Aerocrine s 2008 Annual Report and on pages 5-9 of the IPO prospectus dated 12 June Publication dates 2010 Interim report for the first quarter of 2010 Annual General Meeting Interim report for the second quarter of 2010 Interim report for the third quarter of April a.m. 27 April p.m. 23 July a.m. 1 November 8.00 a.m. Paul de Potocki President and CEO Anders Williamsson Chairman of the Board Lars Gatenbeck Board member Lars Gustafsson Board member Staffan Lindstrand Board member Magnus Lundberg Board member Yvonne Mårtensson Board member Karl Swartling Board member Aerocrine AB (publ) Corporate identity number Aerocrine AB (publ), Sundbybergsvägen 9, SE , Solna, Sweden Telephone Telefax info@aerocrine.com Website: This Interim Report has not been subject to review by the Company s auditors. Disclaimer : This is an in-house translation 7(13)

8 INCOME STATEMENTS, SEK 000s Aerocrine Group Oct 1, 2009 Oct 1, 2008 Jan 1, 2009 Jan 1, 2008 Jan 1, 2007 Dec 31, 2009 Dec 31, 2008 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Net sales Cost of goods sold Gross Profit/Loss Sales and marketing expenses Administration expenses Development expenses Other operating income Other operating expenses Operation Profit/Loss Financial income Financial expenses Profit/loss before taxes Taxes Profit/loss for the period Other comprehensive income Income/expenses recognized directly in equity Translation differences on foreign operations Total comprehensive income for the period Amortisation/depreciation included in operating expenses of which intangible assets of which tangible fixed assets Profit/Loss for the period attributable to: shareholders in the parent company Total comprehensive income for the period attributable to: shareholders in the parent company Average numbe rof shares outstanding Average numbe rof shares outstanding after dilution Profit/loss per share (before dilution)* -0,3-0,7-1,3-2,8-2,7 *Profit/loss per share after dilution is not reported, since this would imply improved earnings per share. AEROCRINE, Group INCOME STATEMENTS Q Q Q Q Q Q Q Q Q Net sales for the period Gross profit/loss Gross margin % 66% 73% 73% 68% 67% 63% 64% 63% 67% Operating expenses for the period Operating profit/loss for the period Profit/loss from financial investments Profit/loss for the period Taxes Profit/Loss after taxes Disclaimer : This is an in-house translation 8(13)

9 BLANCE SHEET, SEK 000s Aerocrine Group Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Assets Fixed assets Intangible assets Tangible fixed assets Financial fixed assets Total fixed assets Current assets Inventories Current receivables Cash and equivalents Total current assets Total assets BALANCE SHEET Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 EQUITY ANS LIABILITIES EQUITY Shareholders equity attributable to shareholders in the parent company LIABILITIES Long-term liabilities Short-term liabilities Total shareholders' equity and liabilities Disclaimer : This is an in-house translation 9(13)

10 Changes in consolidated shareholders' equity Attributable to shareholders in the parent company Share Other Profit/loss brought Total capital capital forward, including shareholders' contributions profit/loss for the period equity Opening balance at January Total comprehensive Income for the period New share issues (cash) Expenses related to new share issues Employee shareholder program: -Warrants earned Closing balance at December Opening balance at January Total comprehensive Income for the period New share issues (cash) Expenses related to new share issues Employee shareholder program: -Warrants earned Closing balance at December Opening balance at January Total comprehensive Income for the period New share issues (cash) Expenses related to new share issues Employee shareholder program: -Warrants earned Closing balance at December CASHFLOW STATEMENT, SEK 000s Aerocrine Group Jan 1, 2009 Jan 1, 2008 Jan 1, 2007 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Cashflow from current operation before changes in working capital Total change in working capital Cashflow from current operations Cashflow from investment operations Cashflow from financing operations Cashflow for the period Decrease/increase in cash and equivalents Cash and equivalents at January Exchange rate differences in cash and equivalents Cash and equivalents, closing balance Disclaimer : This is an in-house translation 10(13)

11 AEROCRINE, Group Jan 1, 2009 Jan 1, 2008 Jan 1, 2007 Key ratios Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Netsales SEK ths Gross margin % 70% 64% 67% Return on average shareholders' equity % neg neg neg Equity/Asset ratio % 47% 71% 80% Net indebtness, multiple -0,77-0,87-0,87 Liquid ratio % 148% 288% 464% Average number of employees Investments, SEK ths Warrants outstanding Expenses related to development, SEK ths Development expenses in % of total expenses 37% 33% 33% Jan 1, 2009 Jan 1, 2008 Jan 1, 2007 Data per share Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Number of shares at closing of period (before dilution) Number of shares at closing of period (after dilution) 1) Average number of shares (before dilution) Average number of shares (after dilution) 1) Shareholders' equity per share SEK, before full dilution 0,48 1,62 2,95 Shareholders' equity per share SEK, after full dilution 0,46 1,62 2,95 Earnings' per share, SEK (before dilution) 1) -1,3-2,8-2,7 1) Profit/loss per share after dilution is not reported, since this would imply improved earnings per share. The number of shares after dilution includes no warrants outstanding, since the redemption price exceeds the market value. Definitions Gross margin Gross profit as a percentage of net sales for the period Return on average shareholders' equity % Profit/loss as a percentage of average shareholders' equity Average number of shares Number of shares adjusted for share issues conducted during the year (before dilution) and option programmes outstanding (after dilution) Net indebtness Interest-bearing liabilities less current investments and cash and equivalents divided by shareholders' equity Equity/Asset ratio Shareholders' equity as a percentage of total assets Earnings per share Net profit/loss divided by average number of shares before and after full dilution Shareholders' equity per share Shareholders' equity (adjusted for dilution effects) divided by the number of shares at the close of the period before and after full dilution Liquid ratio Current asstes, excluding inventories and work in progress, in relation to current liabilities Disclaimer : This is an in-house translation 11(13)

12 Segment reporting SEGMENTS Segments - Income North America EU/ROW Total Oct 1, Dec 31, 2009 Income from external customers Total Income Oct 1, Dec 31, 2008 Income from external customers Total Income Segments - Income North America EU/ROW Totalt Jan 1, Dec 31, 2009 Income from external customers Total Income Jan 1, Dec 31, 2008 Income from external customers Total Income Segments Assets Dec 31, 2009 Dec 31, 2008 North America EU/ROW Total Segments - measure of profitability Oct 1, Dec 31, 2009 Oct 1, Dec 31, 2009 Jan 1, Dec 31, 2009 Jan 1, Dec 31, 2009 EBIT North America EBIT EU/ROW Sum EBIT for reportable segments Financial Income Financial Expenses Group - Profit/Loss before income taxes Disclaimer : This is an in-house translation 12(13)

13 Parent Company INCOME STATEMENTS, SEK ths Jan 1, 2009 Jan 1, 2008 Jan 1, 2007 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Net sales Cost of goods sold Gross Profit/loss Sales and marekting expenses Administration expenses Development expenses Other operating income Other operating expenses Operation Profit/loss Financial income Financial expenses Profit/loss before taxes Taxes Profit/loss for the period BALANCE SHEET, SEK 000s Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Assets Intangible assets Tangible assets Financial fixed assets Total fixed assets Current assets Inventories Current receivables Cash and equivalents Total current assets Total assets BALANCE SHEET, SEK 000s Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 EQUITY Shareholders equity attributable to shareholders in the parent company LIABILITIES Long-term liabilities Short-term liabilities Total shareholders' equity and liabilities Pledged assets Contingent liabilities 76 none none Disclaimer : This is an in-house translation 13(13)